In this article, we'll go over how to create and assign taxes to your products!
When a tax is being created, all of the settings for the tax are specified in one place on the Tax page in the Settings. These include:
1. The tax name.
2. The tax percentage rate.
3. The tax type (Standard or Compounded).
4. The types of customers the tax might be excluded from.
Here are the steps for creating and assigning Taxes!
1. Click on the Settings button.
2. Click on the Taxes page to view your taxes.
3. Click the Green Plus button to create a new tax.
4. Enter your Tax Name so that you can easily identify the tax when applied.
5. Enter the Tax Rate for this tax.
6. Select what products this Tax Applies To. We will go over the specifics in the next section.
7. Select the Type of this tax.
Standard Taxes: Standard Taxes are taxes that are applied to the net price of an order item. These are standard retail taxes
Compound Taxes: Compound taxes are a unique type of tax that is applied to the net price of an item, plus standard taxes. Instead of percentages being calculated on just the net, we add standard taxes to that value before calculating compounded taxes. Please only use compounded tax if it is required. You can read this article HEREto learn more.
8. Toggle any customer groups that this tax should be Excluded from. This will cause this tax to not be applied when that group makes a purchase of a product that this tax usually applies to.
After all the information has been entered correctly and reviewed, you can click Save and Close to create this tax!
Appling Your Taxes Correctly:
There are several different ways you can apply a tax based on what products should be taxed.
1. All Products will have this tax applied.
2. Only MJ Products will have this tax applied.
3. Only Non-MJ Products will have this tax applied.
4. Specific Categories that you choose will have this tax applied
Now you're ready to create new taxes and assign them correctly. Nice work! 🌟