Once you have your own store, you have to be aware that Taxes (or VAT) has to be paid at the sales of goods and services. Usually the seller should include (and so collect) the taxes from the consumers at the purchase phase.
There are many different regulations for Taxes so we have different settings at your store to change in order that it suits your products and countries the best.
Include or exclude Selling price
You have the option to include the taxes in the selling price, or you can configure different taxes on top of the Product Price. Only in the last option the buyer will see how much the taxes actually contain.
Difference per Country and Region
Before you start exporting, be aware that taxes rules are different in every country. For example, in Europe it is mandatory to display the VAT price on every order. You can read more about VAT Basic rules EUROPE.
So since tax rates vary between countries, it is possible with Jumpseller to set different Taxes per Country and Region.
Shipping or Billing address
Since different countries can derive different percentages of taxes, you have the choice to apply taxes to the country of the Shipping address or to the Billing address.
Cost of shipping
If you want your customer to see only one total price, you can opt to include the shipping price in the Taxes cost.
Difference per Category of Product
Last but not least, different taxes per Category of Product can be entered, e.g. in Portugal the VAT of wine is 13%, while books have 6% VAT.
Now that you know all the different options we have, and the different rules that apply, we will now guide you through the configuration of the settings.
1. After you logged in to your store, go to the menu’s tab “Settings”.
2. Choose for the sub tab "Taxes".
3. At the top of the page you find the settings to define where you want to base your tax on - it can either be the Shipping address or the Billing address. Note that each address can be in different countries.
For example: Imagine someone living in Portugal wants to buy wine online from their own country but doesn’t own a CreditCard. So he/she asks a friend from the USA to pay for the order with his/her Credit Card.
The shipping address will then be Portugal, while the billing address will be the USA. The taxes in both countries are likely different for buying wine. So as a seller you have to choose if the buyer should pay taxes based on Portugal or based on the USA.
4. The second option of the taxes page defines if you want to apply the taxes to your shipping price or not. If you mark the box, you choose to include the taxes in your shipping price.
5. If you exclude the taxes from the shipping price (so don’t cross the box), you can choose to add different tax percentages. Taxes can be added per Country, per Region and per Product Category.
You will have to insert the percentage of tax per category before adding this changes to the table.
In the example given, we added 13% of taxes on Wine, for the country Portugal and more specific the region Porto.
In this example, where the taxes is excluded of the selling price, the customer would get an overview of the Subtotal, the Shipping price and the Taxes (13%) all calculated separately. This is what the checkout would look like: