Taxation is one of the most important aspects of any business, and make sure your tax system is transparent and easy to understand by your customers. The consequences of online tax are even more complex when it's come to online sales. This is because the online business platform can be sold to many countries, states or particular zone locations and has many types of tax value.
I.AM.RETAILER just resolved all your problems in one solution of Tax management. Are you excited to see how?
Let’s get started with the tour from the setup of the Tax rates
Navigate to admin > Localization > Taxes > Tax Rates, and it'll display the list of Tax rates as default. You can create new Tax rates.
Checking an individual box in the first column will select the tax rates within the same row. Once selected, you can choose to "delete" the tax rates on the top left corner and click the "+" button to add new.
Note: If the tax rate has already been used by your customer, you cannot delete it.
*Tax Name: Give your tax rate name
*Tax Rate: Enter the value of the rate
Type: Choose the type of tax percentage or Fixed amount
Customer Group: If you want to tax a specific customer group, tick there
Geo zone: If you want to tax a specific geo zone, then choose from the drop down
Still confused? Let us try to explain this with an example. look no matter how geographically diverse, eg. If some states in India have decided to charge some fixed tax. For that, you want to add a new "Geo Zone". Let's do it!
Check this Zone and Geo zone(link to that manual doc)
Note: It is not necessary to fill in all the fields, you can choose according to your store. Since the key factor is the tax rate, the * field must be filled in.
Finally, check that tax rates and mandatory are filled and pressing the 'Save' button in the upper right corner will save the information
For your example, creating an India country with three tax rates - CGST 6%, SGST 6% (geo zone
Tamilnadu) and IGST 12%(other than Tamilnadu).
Next, Setup the Tax class
Navigate to admin > Localization > Taxes > Tax class, and it'll display the list of Tax classes as default. You can create a new Tax class.
Click the + button to add new
Tax Class Title: Give the title of Tax class for example GST
Description: Give a short description of the geo zone.
Tax Rate: Choose the tax rate from the dropdown list. (Create tax rate: Navigate to admin > Localization > Taxes > Tax Rates)
Based on: Choose the option from the list such as Shipping address, payment address and store address
Priority: Set the priority of the tax rate list e.g. 1st, 2nd etc.
Note : Before that, you need to add the product tax of each one.
Finally, check that tax classes are filled and pressing the 'Save' button in the upper right corner will save the information.
Congratulations !!! Now your store tax calculation is enabled for your customer, which will help your customers make informed decisions before they make a purchase.
Let's take a look at how the tax calculation works from the front end of your store