These recommended settings can be used for most tax configurations for stores within the United States.
Tax option | Recommendation |
---|---|
Load catalog prices | Excluding tax |
FPT | No, because FPT is not taxed. |
Tax based on | Shipping origin |
Tax Calculation | On total |
Tax shipping? | No |
Apply Discount | Before tax |
Comment | All tax zones are the same priority; ideally, a zone for state and one or more zones for zip code lookup. |
Tax class | Recommended setting |
---|---|
Tax class for shipping | None |
Option | Recommended setting |
---|---|
Tax Calculation Method Based On | Total |
Tax Calculation Based On | Shipping Origin |
Catalog Prices | Excluding Tax |
Shipping Prices | Excluding Tax |
Apply Customer Tax | After Discount |
Apply Discount on Prices | Excluding Tax |
Option | Recommended setting |
---|---|
Default Country | United States |
Default State | State where business is located. |
Default Post Code | The postal code that is used in your tax zones. |
Option | Recommended setting |
---|---|
Display Product Prices in Catalog | Excluding Tax |
Display Shipping Prices | Excluding Tax |
Option | Recommended setting |
---|---|
Display Prices | Excluding Tax |
Display Subtotal | Excluding Tax |
Display Shipping Amount | Excluding Tax |
Display Gift Wrapping Prices | Excluding Tax |
Display Printed Card Prices | Excluding Tax |
Include Tax in Grand Total | Yes |
Display Full Tax Summary | Yes |
Display Zero Tax Subtotal | Yes |
Option | Recommended setting |
---|---|
Display Prices | Excluding Tax |
Display Subtotal | Excluding Tax |
Display Shipping Amount | Excluding Tax |
Include Tax in Grand Total | Yes |
Display Full Tax Summary | Yes |
Display Zero Tax Subtotal | Yes |
Option | Recommended setting |
---|---|
Enable FPT | No , except in California. |
These recommended settings can be used for most tax configurations for stores within the United Kingdom.
Tax option | Recommendation |
---|---|
Load catalog prices | Excluding tax |
FPT | Yes, including FPT and description |
Tax based on | Shipping Address |
Tax Calculation | On total |
Tax shipping? | Yes |
Apply Discount | Before tax, discount on prices, including tax. |
Comment | For merchants marking up supplier invoices (including VAT). |
Tax option | Recommendation |
---|---|
Load catalog prices | Excluding tax |
FPT | Yes, including FPT and description |
Tax based on | Shipping Address |
Tax Calculation | On item |
Tax shipping? | Yes |
Apply Discount | Before tax, discount on prices, including tax. |
Comment | For B2B merchants to provide simpler VAT supply chain considerations. Tax calculation on row is also valid; however, check with your taxing jurisdiction. Setup assumes that a merchant is in the supply chain and that goods sold are used by other vendors for VAT rebates and so on. This definition makes it easy to discern tax by item for faster rebate generation. Note: Some jurisdictions require different rounding strategies not currently supported by Commerce, and that not all jurisdictions allow item or row level tax. |
Merchants that are in a GST/PST province (Montreal) should create one tax rule and show a combined tax amount. Be sure to consult a qualified tax authority if you have any questions. For information about the tax requirements of specific provinces, see the following: [Revenu Québec][1], [Government of Saskatchewan][2], and [Manitoba Information for Vendors][3]
Tax option | Recommendation |
---|---|
Load catalog prices | Excluding tax |
FPT | Yes, including FPT, description, and apply tax to FPT. |
Tax based on | Shipping origin |
Tax Calculation | On total |
Tax shipping? | Yes |
Apply Discount | Before tax |
The following example shows how to set up GST tax rates for Canada and PST tax rates for Saskatchewan, with tax rules that calculate and display the two tax rates. This information outlines an example configuration; be sure to verify the correct tax rates and rules for your tax jurisdictions. When setting up taxes, set the store scope to apply the configuration to all applicable stores and websites.
On the Admin sidebar, go to Stores > Settings > Configuration.
For a multisite configuration, set Store View to the website and store that is the target of the configuration.
In the left panel, expand Sales and choose Tax.
Click to expand each section on the page and complete the following settings:
Field | Recommended setting |
---|---|
Tax Calculation Method Based On | Total |
Tax Calculation Based On | Shipping Address |
Catalog Prices | Excluding Tax |
Shipping Prices | Excluding Tax |
Apply Customer Tax | After Discount |
Apply Discount on Prices | Excluding Tax |
Apply Tax On | Custom Price (if available) |
Field | Recommended setting |
---|---|
Tax Class for Shipping | Shipping (shipping is taxed) |
Field | Recommended setting |
---|---|
Default Country | Canada |
Default State | (as appropriate) |
Default Postal Code | * (asterisk) |
Field | Recommended setting |
---|---|
Include Tax in Grand Total | Yes |
Display Full Tax Summary | Yes |
Display Zero in Tax Subtotal | Yes |
Field | Recommended setting |
---|---|
Enable FPT | Yes |
All FPT display settings | Including FPT and FPT description |
Apply Discounts to FPT | No |
Apply Tax to FPT | Yes |
Include FPT in Subtotal | No |
To print the GST number on invoices and other sales documents, include it in the name of the applicable tax rates. The GST appears as part of the GST amount on any order summary.
Field | Recommended setting |
---|---|
Tax Identifier | Canada-GST |
Country | Canada |
State | * (asterisk) |
Zip/Post is Range | No |
Zip/Post Code | * (asterisk) |
Rate Percent | 5.0000 |
Set up another tax rate for the applicable province.
Field | Recommended setting |
---|---|
Tax Identifier | Canada-SK-PST |
Country | Canada |
State | Saskatchewan |
Zip/Post is Range | No |
Zip/Post Code | * (asterisk) |
Rate Percent | 5.0000 |
To avoid compounding the tax and to correctly display the calculated tax as separate line items for GST and PST, set different priorities for each rule and select the Calculate off subtotal only checkbox. Each tax appears as a separate line item, but the tax amounts are not compounded.
Field | Recommended setting |
---|---|
Name | Retail-Canada-GST |
Customer Tax Class | Retail Customer |
Product Tax Class | Taxable GoodsShipping |
Tax Rate | Canada-GST |
Priority | 0 |
Calculate off subtotal only | Select this checkbox. |
Sort Order | 0 |
For this tax rule, make sure to set the priority to 0 and select the Calculate off subtotal only checkbox. Each tax appears as a separate line item, but the tax amounts are not compounded.
Field | Recommended setting |
---|---|
Name | Retail-Canada-PST |
Customer Tax Class | Retail Customer |
Product Tax Class | Taxable GoodsShipping |
Tax Rate | Canada-SK-PT |
Priority | 1 |
Calculate off subtotal only | Select this checkbox. |
Sort Order | 0 |
When complete, click Save Config.
Return to your storefront and create a sample order to test the results.
The following example depicts a store based in France that sells 100k+ Euros in France and 100k+ Euros in Germany.
For this example, it is assumed that multiple VAT-Reduced product tax classes are not needed.
Create a VAT-Standard product tax class.
Create a VAT-Reduced product tax class.
Create a VAT-Free product tax class.
Create the following tax rates:
Tax rates | Settings |
---|---|
France-StandardVAT | Country: France State/Region: * ZIP/Postal Code: * Rate: 20% |
France-ReducedVAT | Country: France State/Region: * ZIP/Postal Code: * Rate: 5% |
Germany-StandardVAT | Country: Germany State/Region: * ZIP/Postal Code: * Rate: 19% |
Germany-ReducedVAT | Country: Germany State/Region: * ZIP/Postal Code: * Rate: 7% |
Create the following tax rules:
Tax rules | Settings |
---|---|
Retail-France-StandardVAT | Customer Class: Retail Customer Tax Class: VAT-Standard Tax Rate: France-StandardVAT Priority: 0 Sort Order: 0 |
Retail-France-ReducedVAT | Customer Class: Retail Customer Tax Class: VAT Reduced Tax Rate: France-ReducedVAT Priority: 0 Sort Order: 0 |
Retail-Germany-StandardVAT | Customer Class: Retail Customer Tax Class: VAT-Standard Tax Rate: Germany-StandardVAT Priority: 0 Sort Order: 0 |
Retail-Germany-ReducedVAT | Customer Class: Retail Customer Tax Class: VAT-Reduced Tax Rate: Germany-ReducedVAT Priority: 0 Sort Order: 0 |
On the Admin sidebar, go to Stores > Settings > All Stores.
Under the default website, create a store view for Germany.
Next, do the following:
On the Admin sidebar, go to Stores > Settings > Configuration.
In the upper-left corner, set Default Config to the French store.
On the General page, expand the Countries Options section, and set the default country to
France
.
Complete the locale options as needed.
In the upper-left corner, choose the German Store View.
On the General page, expand Countries Options and set the default country to
Germany
.
Complete the locale options as needed.
Complete the following general tax settings:
Field | Recommended setting |
---|---|
Tax Classes | |
Tax Class for Shipping | Shipping (shipping is taxed) |
Calculation Settings | |
Tax Calculation Method Based On | Total |
Tax Calculation Based On | Shipping Address |
Catalog Prices | Including Tax |
Shipping Prices | Including Tax |
Apply Customer Tax | After Discount |
Apply Discount on Prices | Including Tax |
Apply Tax On | Custom Price if available |
Default Tax Destination Calculation | |
Default Country | France |
Default State | |
Default Postal Code | * (asterisk) |
Fixed Product taxes | |
Enable FPT | Yes |
All FPT Display Settings | Including FPT and FPT description |
Apply Discounts to FPT | No |
Apply Tax to FPT | Yes |
Include FPT in Subtotal | Yes |
On the Admin sidebar, go to Stores > Settings > Configuration.
In the upper-right corner, set Store View to the view to the German store and click OK to confirm.
In the left panel, expand Sales and choose Tax.
In the Default Tax Destination Calculation section, do the following:
Clear the Use Website checkbox after each field,
To match your site’s Shipping Settings point of origin, update the following values:
This setting ensures that tax is calculated correctly when product prices include tax.
When complete, click Save Config.