Tax settings (VAT, Sales tax and more)

If you sell products commercially, you most likely have to collect taxes on behalf of your government. This function of the My Store wizard allows you to define the tax settings which apply to your store.

Tax settings

In most cases Santu will automatically determine the taxes which apply to your store, depending on your location.

This is the location of your store as defined in My Store General settings.

So when you go to tax settings you will most likely already find the correct tax setup for your store. Just verify that it is the right tax for your location. Otherwise click on the edit button next to the location of your store and adjust the location.

Product prices include sales tax: if you tick this box Santu will assume that all prices you enter already include the required tax component, such as VAT or GST. In the United States this checkbox should remain un-ticked.

Allow tax exemption: if this setting is on, business customers can enter a tax exemption number to avoid being charged tax. This function also caters for European regulations, where only businesses in other EU countries can request a tax exemption from a store owner in an EU country.

Add tax region

Sometimes you have to collect taxes and multiple regions, depending on your business set up. In the United States for example you have to collect sales tax wherever you have a so-called Nexus, i.e. some kind of business presence.

To add a new Nexus simply click on the Add Nexus button and enter the ZIP Code of the region affected.

Then click on Get tax amounts.

Now Santu will attempt to recover the taxes applying to that region and you can add it to your tax settings with the Add taxes button.

Now Santu will correctly charge taxes in your new Nexus locations as well.

In other locations you can add additional tax regions by clicking on the Add region button.

Add tax

If you sell unusual products you may sometimes have to set up an extra tax value. You can do this by clicking on the Add tax button.

This will create a new tax group where you can give the tax a name and add regions to it as required.

Configure shipping tax

Here you define the taxes which are applying to your shipping charges. Depending on your location this taxes might be different from the taxes applying to your products.

To create a specific tax which only applies to shipping simply create a new tax and select it as shipping tax.

If you are in Europe you should select the Apply most used product tax to shipping charges option. This will automatically calculate shipping charges based on the majority tax rule, which applies in EU countries.

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