How to Setup Tax Rules in WooCommerce

by Owais Alam  June 20, 2016

It can get pretty complicated to set up duties and tax rates, which is one of the primary tasks to perform when setting up a store. Taxes can be a complex matter, however, WooCommerce plans to make setup as direct as possible.

Setting up Tax Rules in WooCommerce

 

Enable Taxes

To get to the tax settings screens, they should be enabled initially.

  • Go to: WooCommerce > Settings > Tax.
  • Tick the Enable Taxes

Enable Taxes

  • Save Changes.

Tax Options

To start configuring your taxes, go to: WooCommerce > Settings > Tax.

The tax tab shows a few choices that can be set to suit your necessities settings you pick depend on the tax locale under which your store is found.

Tax Options

Prices Entered With Tax

This alternative is maybe the most vital when overseeing charges in your store, as it decides how you include item costs later on.

  • “Yes, I will enter prices inclusive of tax” implies that all catalog costs are information utilizing your store’s base tax rate.
  • “No, I will enter prices exclusive of tax” would imply that your inventory costs should be tax exclusive.

Calculate Tax Based On

This setting determines which address is used for tax calculations.

  • Customer billing address
  • Customer shipping address (default), which is found under the General tab
  • Store base address

On the off chance that you utilize store base address, expenses will dependably be based on your store area and not your client’s area.

Shipping Tax Class

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.

Round Tax at Subtotal Level, Instead of Rounding per Line

In the event that adjusting is done toward the end in your expense purview (when the subtotal is computed), enable this option.

Additional Tax Classes

Tax Classes are assigned to your products. In most cases, you want to use the default “standard” class. If you sell goods that require a different tax class (i.e., Tax, except zero-rated products) you can add the classes here. To get started, we include Standard, Reduced Rate, and Zero Rate tax classes.

Every class is recorded at the highest point of the assessment settings page – click a class to view tax rates assigned to the class.

Display Prices in the Shop

This choice decides how costs are shown in your shop/catalog. Browse inclusive/exclusive duty view.

Display Prices During Cart and Checkout

This choice decides how costs are shown in your truck and checkout pages – it works free of your list costs. Browse inclusive / exclusive tax view.

Price Display Suffix

Allows you to change display to: Prices include % tax/VAT or anything appropriate for your store.

Display Tax Totals

This determines if multiple taxes get displayed as one total during checkout, or as an itemized list of taxes.

“Standard” Tax Rates

Tax classes are displayed at the top of the tax screen. Click one to view standard tax rates for the class.

In the standard tax rates table, you can define tax rates (one per row). Click Insert Row to get started.

Each tax rate has these attributes:

  • Country Code– 2-digit country code for the rate.
  • State Code– 2-digit state code for the rate.
  • ZIP/Postcode– Enter postcodes for the rate.
  • City– Semi-colon separated list of cities for the rate. Leave blank (*) to apply to all cities.
  • Rate% – Enter the tax rate, for example, 20.000 for a tax rate of 20%.
  • Tax Name– Name your tax, e.g. VAT
  • Priority– Choose a priority for this tax rate. Only 1 matching rate per priority will be used.
  • Compound– If this rate is compound (applied on top of all prior taxes) check this box.
  • Shipping– If this rate also applies to shipping, check this box.

Deleting Tax Rates

Go to: WooCommerce > Settings > Tax > Standard, Reduced Rate, Zero Rate

  • Select the incorrect lines by clicking on them. They will be highlighted in yellow.
  • Select Remove Selected Rows. This will remove the highlighted rows.
  • Save changes.

Set Tax Rates

If you want to delete all tax rates at once, use the ‘Delete all WooCommerce tax rates’ option in WooCommerce > System Status > Tools.

Delete all taxes

View Tax Reports

Tax reporting can be found in Reports > Taxes > Taxes by Date > Year. This report gives you a chance to see Tax for the year.

Tax Report

Going to Reports > Taxes > Taxes by code displays a different report, showing taxes separately.

Taxes by Code

Apply different tax rates based on the customer role

To do this, add this code at the end of your functions.php file located in wp-content/themes/your-theme-name/:

In the example above, Zero Rate tax rate only to administrators.

You may change current_user_can( ‘administrator’ ) to current_user_can( ‘shop-manager’ ) to apply it only to shop managers or to current_user_can( ‘subscriber’ ) to change the different tax rate only to subscribers.

This code is flexible and can be improved using Groups instead of roles if you wish.

Conclusion

This document helps you to Set up duties and tax rates, and understand the general Tax settings of WooCommmerce. We went through all tax settings available in WooCommerce.

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About Owais Alam

is the WordPress Community Manager at Cloudways – A Managed WooCommerce Hosting Platform and a seasoned PHP developer. He loves to develop all sorts of websites on WordPress and is in love with WooCommerce in particular. You can email him at owais.alam@cloudways.com

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