

Note that it is not possible to delete the Standard tax rate but you can leave it empty and it will be ignored: The Standard class is there by default but Tax A, Tax B, Tax C should be created for each tax class respectively. The goal is to make sure that your highest rate is listed the first in the Additional tax class section if you don’t use the Standard class and if you need the highest tax rate to apply to shipping, for example. If you don’t have a product with the Standard rate in the order, then the first rate found in the Additional tax class section will be used for shipping.If you have a product with the Standard rate in the order, it will be used for the shipping regardless if this rate is high or low.In the case of multiple tax rates in the order, the shipping tax will be applied as follows: In most setups, shipping tax class is inherited from the item being shipped, e.g., Shipping a reduced rate item such as baby clothes would also use a reduced rate. If this is not the case in your jurisdiction, choose a different tax class. If you use store base address, taxes are always based on your store location and not your customer’s location. This setting determines which address is used for tax calculations. Automated tax calculation with WooCommerce Tax.Tax_amount = price * ( tax_rate_% / 100 ) The tax calculation for tax- exclusive prices is: Tax_amount = price - ( price / ( ( tax_rate_% / 100 ) + 1 ) ) The tax calculation for tax- inclusive prices is: A tax of 20% would be applied on top of this during checkout making the amount payable £9.99. Using the example from above, a UK shop would enter 8.32 at the product price. “No, I will enter prices exclusive of tax” would mean that your catalog prices need to be tax exclusive.A customer in the UK would pay £9.99 as defined, and a customer in the US would only pay £8.32. You enter a product price of £9.99 that includes £1.67 tax. “Yes, I will enter prices inclusive of tax” means that all catalog prices are input using your store’s base tax rate.įor example, in the UK you would input prices inclusive of the 20% tax rate e.g.This option is perhaps the most important when managing taxes in your store, as it determines how you input product prices later on.
