If you need to charge a flat sales tax, state/region sales tax, VAT, GST, or other tax, RazorCart gives you an array of flexible options to automatically apply tax charges. This article will guide you through setting up tax and show you other tax-related options of the RazorCart system.
Select the Tax tab under Store setup on the left hand side.
Flat Tax All Orders - Select “Flat Tax All Orders” if you want to charge a flat tax rate to all orders in the store. All customers will be charged tax regardless of what city, state/region or country they are ordering from. This option requires you enter a tax rate.
Flat Tax in Regions - Flat Tax in Regions List allows you to charge a flat tax rate for all regions you define. Only customers with a shipping address in the taxable regions will be charged tax. This option requires that you define one or more taxable regions and enter a tax rate. Please see the “Flat Tax in Regions” KB article for more information.
Flat Tax Home Country - When you select “Flat Tax Home Country” the cart will compare the country entered by the user during checkout with the store country selected under the “General Store Setup” section above. If the store country matches the country entered by the user the cart will charge tax on the order. This option requires that you select one or more states in the taxable state list and enter a tax rate.
Use Tax Tables - RazorCart provides the ability to import and manage your tax tables. Select “Use Tax Tables” if you want the cart to lookup the exact tax rate in the tax tables.
For configuration instructions for the Use Tax Tables option, see the “Use Tax Tables” KB article for more information.
To setup the cart to calculate tax using the tax table option you will first need to populate the tax tables for your taxable regions using the Tax Table Management Screen accessed from the Tax Tables tab of the Tax Setup Page.
HST (Canada) - HST stands for Harmonized Sales Tax and is the emerging tax standard for Canadian Provinces. When you select HST as the tax option in your store the cart uses the tax table to lookup the province and get the tax rate. HST is only charged for customers in your home province. This option requires that you add provinces you want to charge tax in using the tax tables setup page.
GST/PST - GST stands for Goods and Services tax and PST stands for Provincial Sales Tax and is typically used for Canadian Provinces. PST is only charged for customers in your home province.
VAT/GST (Product Inclusive) - Value added tax (VAT), or goods and services tax (GST) is a tax used by non-United States countries that is levied on any product that is added to the cart.
Apply EU VAT Regulations - When you select the tax option “Apply EU VAT Regulations” the cart will apply tax calculations according to European VAT regulations (last updated by Directive 2006/112/EC).
Apply EU VAT Regulations By Product - When you select the tax option “Apply EU VAT Regulations” the cart will apply tax calculations according to European VAT regulations (last updated by Directive 2006/112/EC).
Zip2Tax Real Time Tax - RazorCart is integrated to import data and receive real time tax calculation with Zip2Tax.com. When you select the Zip2Tax Real Time Integration the cart will do a real time lookup to the Zip2Tax service and display the appropriate tax to the user in the cart checkout.
No Tax - Select the “No Tax” option if you do not want to charge tax in your cart. If you choose this option no tax will be charged on all store orders.
The Tax Shipping section allows you to configure how the store charges tax on shipping.
Never Apply Taxes - The cart will not tax shipping.
Always Apply Taxes - The cart will tax shipping always.
Only for Taxable Products - The cart will look up the tax flag for the product and only tax shipping for products that you have set up as taxable.
Tax Handling - When this option is enabled, tax will be charged on the handling charge of all store orders. For configuration instructions for Handling, see the Handling Setup KB article for more information.
The Tax Discounts section allows you to configure how to apply tax when a Discount or Coupon has been applied to the order.
Apply Tax Before Discounts (Default) - This option is enabled by default and will calculate tax on the subtotal before discounts are applied.
Apply Tax After Discounts - This option calculates tax on the subtotal after discounts are applied.
Be sure to save your settings. You now have all of the tools you need to configure tax in your store! If you have any questions, please Contact Us.