In Tax Settings you can define whether you wish the prices of your webshop to be displayed with or without tax as well as manage different tax types. It is possible to find Tax under the Settings options on the left side menu of the shop.
For a comprehensive guide on different ways of displaying tax on your shop, see this article.
1. Define Tax Behavior
In case you wish to include tax in product prices, simply check the square before the option and click on the Save button.
1.1. Option Enabled
When this option is enabled, the prices will always be shown with tax on the catalog, product page and cart. At the checkout flow, the price will be equally shown with tax and a separate line should show the amount of tax paid on that product or purchase.
1.2. Option Disabled
When the option is disabled, the prices will always be shown without tax on the catalog, product page and cart. Only at the second phase of the checkout flow, in the Payment phase, will the product or purchase be shown with tax.
2. Tax Types
In the following section you will be able to define different Tax Types to the different languages your website supports. Remember that each language is associated with a primary currency.
2.1. Edit or Add Tax Type
By default you will see three different tax types. To edit them, simply click on top of the Tax Type you wish to modify and the field will expand with the different settings. To create a new tax type, simply press the Create Tax Type button - you can add as many tax types as you wish!
2.2. Tax Type Name
In this section you should name your tax type; make it easily recognisable since this would be the name displayed when choosing which tax to associate with each product.
In this section you should define what type of products will be included in that tax type - physical or digital. This is particularly relevant because digital taxes are differently treated. So if you are selling physical goods - books, clothes, etc - make to sure to leave that square checked; if you are selling digital goods - music, e-books, etc - make sure to uncheck the square.
2.4. Tax Rate
By default, the tax is automatically calculated based on your store location and on the shipping address of your customer. You can learn how to define your store location here!
However, it is possible to manually insert a specific rate for tax calculation. If you want to manually add a tax rate, simply check the Use Specific Rate for Tax Calculation option. Once you have enabled the "Use Specific Rate for Tax Calculation", two new fields and a new option will appear:
In this field you should name the tax with what you want it to appear as in the checkout flow.
2.4.2. Specific Rate
In this field you should add the specific rate you want to associate with that Tax Type. You should write it in the format 0.000, so if you want to add a 25% tax, for example, simply type down 25.000.
2.4.3. Include in the Product Price Before Subtotal Calculation
In this section you can determine if the tax should be included in the product price before the Checkout Flow or not.
2.5. Skip Tax Calculation
It is also possible to skip tax calculation for that tax type all together. If you want certain products price to not include tax, simply enable this options.
3. Tax Rounding
To determine rounding rules, we reference an up to date library which covers most cases. In cases not covered, the editor will round up prices with added tax. If your product costs 9.5$ and your country has a sales tax of 25%, then the produce price will be displayed as 11.88$ (9.5 x 25% = 11.875$).
4. Please remember!
The editor calculates the tax rates automatically as long as you define the kind of product you are selling. All you must do is define the type - physical goods, digital goods or events - when creating your products on the editor.