All Tax Zones
This screen displays all Tax Zones.
Tax Zones are simply geographical physical address areas that
your organization must collect tax from, for all or some of your Products.
Taxes are based on either the location of the Shipping Addresses of
each Recipient, or the Billing Address of each Customer during the
checkout process.
Taxes are calculated as a percentage of the Order Subtotal. Any
shipping fees are excluded from tax calculations.
TIP: If some of your Customers are Tax-Exempt, you can prompt them
during the checkout process and the Tax will not be
calculated, displayed, or collected for that Order.
Your
Site Manager can enable this feature in the Site Settings.
TIP: If none of your Customers are taxable, or none of your Products are
taxable, then you can completely disable tax from all Commerce Pages
and Orders. Your Site Manager can enable this feature in the Site Settings.
IMPORTANT: Tax Zones must not overlay each other.
Creating Tax Zones
To create a Tax Zone, click "Create Tax Zone".
How Tax is Calculated
Both the Billing and/or the Shipping Addresses are considered in the
calculation of tax for each Order. Only "taxable" Products will be
included in any tax calculations.
For each taxable Product in the Cart, taxes will be
accumulated as follows:
- For Products that are "shippable", the sum of all taxable
Products for each
recipient in the Cart is computed:
Destination Tax = ((Product Price - Product Discount) * Product
Quantity) * Tax Percentage from the Tax Zone of the Shipping Address.
- For Products that are NOT "shippable", the sum of
all taxable Products in the Cart is computed:
Purchaser Tax = ((Product Price - Product Discount) * Product Quantity)
* Tax Percentage from the Tax Zone of the Billing Address
Therefore, the total Order Tax = Destination Tax + Purchaser Tax