Join Patrick Rauland for an in-depth discussion in this video Configure tax settings, part of WordPress Ecommerce: WooCommerce.
- [Instructor] Before we get into actually adding tax rates, we should configure the basic tax settings. In the admin of your site, let's go to WooCommerce, settings, and then tax. This brings us to a screen where we can configure the overall tax settings. There's a lot of options here. If you want to know why there are so many options, it's so that WooCommerce can be configured to work in just about any country with any tax laws. Most of this, you won't need, but there are a few settings that we should touch on.
The first is how you want to display your taxes. Displaying prices excluding tax is common in the United States. Displaying products with tax included is common in Europe. If you scroll down, there's more settings that have to do with excluding or including tax. Just for your sanity, I recommend keeping all of these the same, so if you have excluding up here, I recommend keeping excluding down here. The Calculate Tax Based On is one of the more important settings. It's basically asking you how should I determine how many taxes to pay? Usually in the U.S., it's either customer shipping address, or customer billing address.
You should check with a tax professional. If we scroll down, we'll see Display Tax Totals, and by default, they're itemized, but you can also combine them into a single total. I have seen this in different formats in physical brick and mortar stores, and online stores. Basically, if you have overlapping taxes, WooCommerce is asking you if you want to merge them all together, or if you want to list them separately, so you might have a state tax, and then you might have a special zip code tax, and there might be some additional taxes on top of that. You can choose to list these separately or all together.
Generally speaking, more information here is better unless you have a ton of taxes. It'll usually only be one rate, but if you do have multiple rates, it's nice to break them down for your customer. Check with a tax professional about multiple taxes, and how you should display them. And once you're done, click Save Changes.
- Why WooCommerce?
- Installing WooCommerce
- Setting up your store
- Adding products, including images and data
- Creating a subscription product
- Setting up shipping
- Configuring payment options
- Setting up taxes
- Customizing your theme
- Connecting Google Analytics and MailChimp
- Managing orders and reports