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  • 2012/07/04

Tax Classes

Tax classes allow you to charge tax based on a user's region. Each product can be assigned its own tax class, thereby allowing you to limit aspect like charging a user for purchasing a digital vs physical product.

Creating a Tax Class

To create a tax, do the following from the admin control panel:

  1. Click on "Cart"
  2. Scroll down to the section named "Tax Classes"
  3. Click on "[+] Create new tax class"
  4. Input a reference name for the tax class.
  5. Input the tax rate for this tax class.
  6. Optionally, establish the region of the world for which this tax class is applicable.
  7. Save the changes.

Important Note About Regions

If you choose a region, the user's country and/or state will need to match the tax class's region for tax to be charged on a product. If no region is selected, the product will always be charged the tax class's tax rate.

Assigning Tax Classes

Once you have created a tax class, you will need to assign it to your products. The program will only charge tax if the following criteria is met:

  • A product with the tax class assigned to it is in the cart,
  • If the tax class has a region, the user's region will need to match the tax class's region.

To assign a tax class to a product, when creating or editing a product, simply select it from the Tax Class field dropdown.

Common Issues With Tax Classes

Tax Is Not Being Applied To Orders

There are several possible reasons for this:

  1. The user's country/state does not match the tax class's settings,
  2. The user is purchasing a product that either has a different tax class assigned to it, or no tax class assigned to it. Remember, you must assign a tax class to a product to make it eligible for taxation!