X-Cart offers a tax class feature that you can use to assign special tax rates to groups of products and delivery costs if required. Tax classes differentiate by the rate calculation rules.

Product Tax Classes

According to your country's laws, you may need to charge different taxes for different product types. For instance, you may need to calculate sales tax differently for alcohol and no-alcohol products.

Using the tax class feature in your online store, you can organize products into groups according to the tax rate calculation rules.

For example, suppose you have a food store selling both alcohol and no-alcohol products, and you need to calculate sales tax differently for those two groups of products. In that case, you will need two tax classes - one for alcohol products and another for no-alcohol products. To make it work, you will need to specify the calculation rules for each tax class. You will also need to assign a tax class to every product in your store. This way, all products will have appropriate tax rates applied to them.

X-Cart requires that every product must have a tax class assigned to it. By default, all new products have the Default tax class set. Therefore, if you expect all of your store's products to use the same tax rates, you do not need to create any additional tax classes - use the Default tax class for all rates. However, if you will have different tax rates for different types of products - like in the example with alcohol and no-alcohol products - you will need additional tax classes.

Tax Classes for Shipping

You can use tax classes for shipping as well. Typically you create a tax class, set appropriate tax rates for it, and assign the tax class to a shipping method via the Shipping Methods section.

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