|
Example 1.
Suppose, your store is located in Texas,
United States, and you need to impose a 8.25% sales tax on all orders
delivered within Texas (The sales tax is not charged on deliveries made
outside Texas). The tax needs to be calculated based on the discounted
subtotal amount of orders before any shipping charges are applied.
To configure this tax, follow these
steps:
|
1. |
Set up a
destination zone for Texas (for example, name this zone "Texas"): |
|
Countries: |
United
States |
|
States: |
United
States: Texas |
|
Counties: |
-- |
|
Cities: |
-- |
|
Zip/Postal
codes: |
-- |
|
Addresses: |
-- |
|
2. |
Click 'Tax
Rate' section of your store's administration back-end and
click on Localtax8 |
|
a) |
Set the
rate value to 8.25%. |
|
b) |
Apply it
to the zone "Texas". |
|
c) |
Set the
membership level to
All. |
|
4. |
Apply the
tax to all the products to which it needs to be applied by
highlighting the tax name on the 'Product
details' page. Make sure that the 'Tax
exempt' drop-down box for these
products is set to No. |
Please note that if the cost of shipping
for different locations in Texas is not the same, you will have to
define several destination zones for Texas (a separate zone for each
Texas location with a different shipping rate) and to apply the tax rate
of 8.25% to each of these zones. Technically, this means that you will
have more than one rates defined for Texas sales tax, and each of these
tax rates will have the value of 8.25% and will be applied to a certain
destination zone in Texas.
Example 2.
Suppose, your store sells products to
your own state and to two neighboring states. You have two categories of
customers, retail and wholesale. Wholesale customers correspond to the
membership level "Wholesale", retail customers are just ordinary
customers (registered or anonymous) without a membership level. For
example, you need to impose a sales tax on products purchased by retail
customers and shipped within your own state. Any customers who order
products to be shipped out of state and wholesale customers in-state do
not pay sales tax.
In this situation, the sales tax can be
set up as follows:
|
1. |
Set up a destination zone for your
own state (for example, "Zone 1"). |
|
3. |
Define
two
tax rates for this tax: |
|
▪ |
Set the first tax rate equal to the
sales tax amount that needs to be applied to in-state retail
purchases. Apply this rate to Zone 1
and All membership levels. |
|
▪ |
Set the second tax rate to 0%. Apply
this rate to Zone 1
and to the
Wholesale membership level. |
This way everyone in Zone 1 except
Wholesale users will pay the sales tax. Wholesale users will see a "0%"
tax line appear on their checkout page.
Please note that if the cost of shipping
for different locations within your state is not the same, you will have
to define several destination zones for your state (a separate zone for
each location with a different shipping rate) and to apply the sales tax
rate to each of these zones. |
Seller FREE Website manual