Getting Started

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Default Tax Settings

Our default tax settings are not necessarily the settings you will use in your store because tax settings can vary. Choose a configuration that works best for your business.

Before You Begin

From your Control Panel, hover your cursor over Settings and select Tax.

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Tax might say VAT depending on your localization - click on VAT instead, it is the same thing.

Locate Tax Settings and click the corresponding Manage icon to visit your full list of general tax settings.

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Calculation Settings

Customize how your taxes are calculated based on the following variables:

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Tax Calculation Based OnChoose a location used to determine your tax calculation. You can choose between three options:
Shipping Address
Billing Address
Shipping Origin
Catalog PricesDetermine if catalog prices include taxes or exclude taxes.
Shipping PricesDetermine if shipping prices include taxes or exclude taxes.
Apply Customer TaxDetermine if tax is applied before or after a discount on applicable products.
Apply Discount On PricesSelect Including Tax to include a tax on the discounted price.
Apply Tax OnSelect Custom Price if Available to apply taxes on a custom price. Otherwise, select Original Price Only to keep taxes applied to your original price.
Enable Cross Border TradeMaintain consistent pricing across European Union borders.

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EU Merchant

We recommend enabling Cross Border Trade if you are an EU merchant that expects your customer's local tax VAT rate to vary from the store's default rate.

Shopping Cart Display Settings

Adjust how taxes display when your customers view their shopping cart.

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  • Display Prices
  • Display Subtotal
  • Display Shipping Amount

Each of the above settings can be set to exclude the tax, include the tax, and show the pricing with and without taxes.

Include Tax In Grand TotalSelect Yes to display your tax in the total price.
Display Full Tax SummarySelect Yes to display a complete breakdown of your taxes.
Display Zero Tax SubtotalSelect Yes to display the total price without taxes
Display Checkout Sidebar Shipping with Tax IncludedSelect Yes to display your shipping price, including tax, in your checkout sidebar.

Tax Classes

Use the Tax Class for Shipping option to apply a tax for your shipping rate. None is the default setting; whatever you charge for shipping is not taxed. If you want to tax your shipping fee, you can select one of your tax classes from the drop-down menu.

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Default Tax Destination Calculation

Configure the default geographic location used to calculate taxes. This sets the tax that is charged until customers set their current address.

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Asterisk *

Select the asterisk (*) to decline specifying a Default State or Default Post Code

Price Display Settings

Similar to your Shopping Cart Display settings, configure how taxes display in relation to your price throughout your store.

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  • Display Product Prices in Catalog
  • Display Shipping Prices

Each of the above settings can be set to have your price exclude the tax, include the tax, or show your price with and without taxes.

Orders, Invoices, Credit Memos Display Settings

Similar to your Shopping Cart Display or Price Display settings, configure how taxes display in relation to your price on an order, invoice or credit memo.

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  • Display Prices
  • Display Subtotal
  • Display Shipping Amount

Each of the above settings can be set to have your price exclude the tax, include the tax, or show your price with and without taxes.

Include Tax in Grand TotalSelect Yes to display your tax in the total price.
Display Full Tax SummarySelect Yes to display a complete breakdown of your taxes.
Display Zero Tax SubtotalSelect Yes to display the total price without taxes.

Fixed Product Taxes

Fixed Product Taxes (FPT) sets a static value for the tax instead of a default percentage of the total price. This is useful for stores within tax jurisdictions that have a required fixed tax for certain types of products.

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Enable FPT - Select Yes to use a FPT

Display Price

  • Display Prices In Product Lists
  • Display Prices on Product View Page
  • Display Prices in Sales Modules
  • Display Prices In Emails

The above settings can be each configured separately to display your FPT in four ways.

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Including FPT onlyDisplay your FPT without any additional information
Including FPT and FPT descriptionDisplay your FPT with a description of your fixed tax.
Excluding FPT, FPT description, final priceRemove display of your FPT and any additional information.
Excluding FPTRemove display of your FPT