Taxes will be calculated automatically for users from the US, Canada, Australia and Europe. The taxes are calculated automatically based on the store's location and customer's location. At the time of checkout the customer's tax rate will be calculated according to their country and regional tax rules.
We know that tax laws are constantly changing. Country, state or even city government may apply new tax rates that a business owner is expected to keep up with and TAKU eCommerce will do its best to stay up-to-date on the tax law based on your jurisdiction. It is also recommended that you have a qualified accountant review your tax settings prior to publishing your online store to make sure that they comply with the latest sales tax obligations for e-commerce sales.
How to setup
- You will be require to enter the company's address by going to the eCommerce Control Panel > Settings > General page. Please make sure to enter the Address correctly as the tax rates will be calculated based on this address to the orders on the checkout page.
- Enable automatic taxes in your eCommerce Control Panel > Settings > Taxes page (As shown in the image):
We are done!
After you have enabled the taxes to be automatic, tax rates will be determine based on where you and your customers are located. The eCommerce knows the tax rules in your country, state and even county and city and applies them properly to each order:
- If you’re located in a region with origin-based or destination-based tax.
- If shipping cost or discounts are taxable.
- If you should charge tax in another state or country.
The tax rate is calculated with a postal/zip code accuracy. If your customer provides a detailed zip code (eg. zip+4), it will be calculated with even higher precision. In some states (and the number of such states is growing), the tax is calculated with a street address level precision.