Configuring Specific Tax Setups

Using the eCommerce tax settings and custom code (if required), it is possible to configure special setups to fit the needs of your business.

After reviewing the main Setting up Taxes in eCommerce documentation, read on here for how certain scenarios can be achieved with either the default core eCommerce settings for scenarios to match local or national tax configurations, or with code snippets.

We’re not tax professionals so our advice is how to use our software. For specific advice when it comes to what or when to charge tax/VAT/GST etc, we recommend consulting with a tax professional or an accountant on what may be your best options.

Each business is unique, and there’s no way we can cover every possibility.

Scenarios #

Charge customers the same tax rate as the Store Address #

Some merchants may require all customers are charged the same tax rate for the country or region the store is located in. This means all customers are charged the local tax rate that matches the Store Address.

First, eCommerce needs to know how to charge customers the tax rate. For this scenario, the Store Address location is used so this setting should be chosen – eCommerce > Settings > Tax > Tax options > Calculate tax based on > Select – Shop base address

Next, eCommerce needs to set all customers location as the Shop base address – combined with the previous setting, this will charge the customers the local rate: eCommerce > Settings > General > General options > Default customer location > Shop base address

Finally, add the tax rate only for the country and region of your Shop base address. More details for how to do this in the Setting up tax rates documentation.

The customer is now charged the tax rate for the store and the customer can add a specific billing and shipping address at Checkout without this affecting the tax rate.

Charge customers the tax rate for their own billing address #

Another general scenario is for store to charge the local, regional, or national tax rates for the customer billing address.

First, eCommerce needs to know how to charge customers the tax rate. For this scenario, the customer location is used so this setting should be chosen – eCommerce > Settings > Tax > Tax options > Calculate tax based on > Select – Customer billing address

Next, eCommerce needs to have an address or region to return the correct tax rate. For this Geolocate is used, and the customer general location is send to eCommerce from the browser, and combined with the previous setting, this will charge the customers the tax rate for their country/region: eCommerce > Settings > General > General options > Default customer location > Geolocate

Finally, add the tax rate for all the countries and regions that you are selling to. More details for how to do this in the Setting up tax rates documentation.