Online Store Tax Rates is based on the country where the destination address of the package will be sent to. You can also set different tax rate for different countries in your online store. This article explain the online store tax setting that you can manage.
Turning on the Include Taxes In My Prices will hide the tax calculation under the subtotal in receipt. This mean all the product prices are included tax where there is no need to further calculate tax rate after subtotal.
Charge Taxes On Shipping Rates applies to the sales in online stores only. When this setting is turned on, the tax calculation will be done following the subtotal after the shipping cost is added.
Tax Rates Settings
You can set different tax rate by country by assigning one by one for each country. For countries that have not assigned any tax rate, system will take the value of taxes from Rest of the World. Following are examples of different taxes that assigned to several countries.
Add / Edit Tax Rates
Click the Add Tax button or the Pen logo in each country, you will be shown a tax settings page as follows:
You can select a Country, put the tax percentage in Country Tax. The tax percentage will be calculated based on subtotals. Description is the additional information that you want to include. In the section below, you can also set taxes for each States/Provinces, because there are countries that have different tax rate for different States/Provinces.
The next step in setting up your online store is to arrange a shipping courier that your customers can choose during checkout. Read the next step in Shipping Settings.