How to Setup Tax Rates on Items with WooCommerce
The next step in the guide to setting up an ecommerce website via the WooCommerce WordPress Plugin is to look through the Tax options, and how you can set them up so that Taxes are easy to implement into your sales pages and the functionality of your website as a whole…
Step 1) To find the Tax Options, simply head to the Dashboard and find “WooCommerce” on the sidebar. From the dropdown, click on “Settings”, then find “Tax” on the navigational toolbar on the settings page.
Step 2) To enable taxes and tax calculations, tick the box provided.
Step 3) You can set the prices entered with tax by ticking the boxes marked Yes or No. Taxes will be added depending on which box you tick.
Step 4) You can calculate the tax for each item based on a number of factors, including the customer shipping address (which will make a difference if it is overseas), billing address (if different to shipping address), or your shop base address.
Step 5) The Default Customer Address can be set to ‘No Address’ or ‘Shop Base Address’. Depending on which one you enter, the tax will be included accordingly. If it is left as ‘Shop Base Address’, no tax will be added.
Step 6) Shipping Tax Class can be based on cart items, Standard Rate, Reduced Rate or Zero Rate. Most shipping tax is inherited from a specific item, but it can be altered if you feel you need to change it.
Step 7) Depending on where you are based and your tax jurisdiction, you will either round the tax to subtotal level or round per line.
Step 8) If you have any additional tax classes that you need to add to your products, add them in the box below, with one per line.
Step 9) You can choose to exclude or include tax in the display prices in your shop. Depending on where you are in the world (the US sometimes exclude tax, whereas in the UK, it is almost always included) you might want to change this, but it also depends on what you are selling.
Step 10) The Price Display Suffix allows you to add text to follow the prices of your products (including Inc. Tax, Ex. VAT). Add them using the code displayed below.
Step 11) You can also change the display prices to exclude/include tax when you are in the cart or at the checkout. This will make it easier for your customers to follow when purchasing goods.
Step 12) You can choose to display tax totals as one list or itemized. This depends on how many different tax options you have for each of your products. If you have a few, it is best to leave it as itemized.
Step 13) To set Standard Rates for Taxes, click on “Standard Rates” from the “Tax” navigational toolbar, then click on “Insert Row”. You will be asked to add the Country Code, State Code, ZIP/Postcode, City, Rate %, Tax Name, Priority, Compound and Shipping to the row before saving it.
Step 14) You can also set Reduced Rate Rates for Taxes by clicking on “Reduced Rate Rates” from the “Tax” navigational toolbar, then choosing “Insert Row”. Add the Country Code, State Code, ZIP/Postcode, City, Rate %, Tax Name, Priority, Compound and Shipping to the row before saving it. There is a alpha-2 country codes guide available if you need it to set up your rows.
Step 15) Repeat the process of Steps 13 and 14 for “Zero Rate Rates”, which is the last step of the navigational toolbar under “Tax” on the Settings page.