Taxes are an important, and most times, required part of doing business. Ozcart is equipped with tax features that help make your life a bit easier.
Setting up your taxes in Ozcart involves setting up tax classes, tax rates, customer groups, and geo zones.
You should follow these steps, in order, to set up your taxes:
- Set up your Geo Zone(s).
- Set up your tax rate(s).
- Set up your tax class(es).
- Choose your product's tax class.
Set up Tax Rates
Tax rates enable you to set the percentage or fixed amount of how much the tax rate should be. You can have various tax rates, i.e., some for physical products, some for downloadable products, some for different provinces/states, some for different countries, and so on.
- Navigate to Store Settings > Taxes > Tax Rates.
- Add or edit a tax rate.
- Enter the tax name, e.g., GST (10%) - Australia or HST - Canada, Ontario. It will be easier to recognise throughout the admin area, especially if you have multiple tax rates of the same names (i.e., GST and VAT are used in multiple countries). Note that this tax name will show up on the frontend.
- Choose the type before the tax rate, whether percentage or fixed amount.
- Enter the tax rate, depending on if you chose percentage or fixed amount.
- Choose which customer groups are affected by this tax rate. Important: any time you add a new customer group, you should verify your tax rates to ensure that the correct customer groups are checked.
- Choose which geo zone should be affected by this tax rate.
Set up Tax Classes
Tax classes give you the flexibility to have more than one different tax system for your products. For example, if you want your downloadable products to have no tax or a different tax, you can create a tax class for downloadable products and then assign different tax rates to it.
- Navigate to Store Settings > Taxes > Tax Classes.
- Add or edit a tax class.
- Enter a tax class title. This title will be seen in your admin area's products and in some shipping plugins.
- Add a description for you to know what this is about. Admin only.
- Add a new rule by clicking the plus button:
- Choose a tax rate.
- Choose what it will be based on:
Shipping Address: customer's shipping address. This is the recommended option for most stores.
Payment Address: customer's billing address.
Store Address: this depends on the option set in "Store address for taxes" in Store Settings > General Settings > Options > Taxes.
- Enter its priority number (i.e., which tax rate will have more importance - 0 being the most important).
Important: If you want to have taxes for multiple countries and zones, this is where you must add them all. When you assign a tax class to a product, all tax rates will be used. If a tax is not being applied to a country, it means that the tax rate was not assigned to a tax class that is being used.
Ozcart includes automatic tax calculation and display based on a visitor's IP address. If the visitor is based in Canada, and your store is located in Australia, yet you have Canada tax set up in tax class, then he will see the Canadian tax applied. If there is no Canada tax in the tax class, he will see the Australian tax. Make sure to set up every tax rate that you want to use in the tax class that you want to use.
Add a tax class to a product
Adding a tax class to a product is the only way for that product to calculate tax.
- Navigate to Products > View Products.
- Add or edit a product.
- Navigate to the Specifics tab.
- Scroll down to Tax Class.
- Add the relevant tax class.
If you don't want a product to have tax, in the Specifics tab, select "None" for Tax Class.
Price + Tax
Take advantage of the Price + Tax field to add the full price, which includes tax, to your products.
Adding a value in Price + Tax will auto-calculate the price based on the tax class, and vice versa.
This is helpful for store owners who live in countries where prices must always be displayed with tax, such as in Australia.
When editing a product, you can add the price + tax in the following places:
- Specifics tab.
- Options/Variants tab.
- Promotions tab - for both Quantity Discounts and Specials.
We provide a few tax settings to control the calculation and display of taxes in both your admin area and storefront.
- Navigate to Store Settings > General Settings > Taxes.
- Display price + tax field (admin area): Enable or disable the Price + Tax field in the admin area.
- Calculate taxes based on the store location: If "Display price + tax field (admin area)" is set to "Yes", you can use this feature.
If you select "Yes", taxes will be calculated based on your store's location as set in the Store tab.
If you select "No", you can select the country and zone (province/state) with these 2 options: Country for taxes calculation & Zone for taxes calculation
- Display price + tax (storefront): Enable or disable the price including tax amount on the frontend. If disabled, your visitors will only see the price without tax.
- Show invoices as tax invoice: This changes the invoices generated to tax invoices. It modifies the title from "Invoice" to "Tax Invoice" and adds a message at the bottom of the invoice, mentioning that the total price includes tax.
Note 1: You can add invoice numbers to invoices by viewing an invoice and pressing the cog/gear icon next to "Tax Invoice".
Note 2: If you have a business number filled in Store Settings > General Settings > Store, it will be displayed in invoices. Keep that field empty to remove it from invoices.
- Store address for taxes: Use the store address to calculate taxes if customer is not logged in. You can choose to use the store address for the customer's shipping or payment address.
- Customer address for taxes: Use the customer's default address, after they register & log in, to calculate taxes. You can choose to use the default address for the customer's shipping or payment (billing) address.
If you're Australian and looking to make your invoices ATO tax compliant, read this knowledge base article.
Adding your business number to invoices or other places on your site, for tax purposes, is easy. Read this knowledge base article to do so.