Tax Settings

Just like with offline commerce, governments require online merchants to collect sales tax on orders where it's applicable. WineDirect allows you to manually set up your tax configuration and connect with a third-party tax service to automate your tax configuration.

Tax Settings

Your store's tax settings allow you to configure tax options and settings that work with your tax services to calculate and display Tax on the storefront and control panel.

Go to Settings › Tax, then click Edit next to Store Tax settings to get started.

TAX OPTIONS

Tax Label

The tax label is a generic name that describes the type of Tax applied to orders in your store. This will be shown next to prices that include Tax (per your display settings) and when taxes on carts, orders, and invoices are shown as one summarized line item. Some suggested values include Sales Tax, GST, or just Tax.

Prices Entered with Tax

This setting applies to all prices entered in the control panel, for example, products, discounts, static shipping methods, and fixed-rate shipping for products.

When No, I will enter prices exclusive of Tax is selected, then all prices entered into the control panel are treated as exclusive of Tax.

When Yes, I will enter prices inclusive of Tax is selected, then all prices entered into the control panel are treated as inclusive of Tax.

This setting works with other tax settings, including Default Tax Zone, Default Tax Address, Tax Display Settings, and Tax Zone Display Settings, to determine how prices are calculated and displayed about Tax.

The Prices Entered With the Tax setting affect all prices. You cannot enter prices inclusive of Tax for some prices and exclusive for others.

Fallback Tax

Fallback Tax only applies when your enabled automatic tax provider cannot be reached. You can charge a flat 10% rate or use your manual tax configuration for these instances. If manual taxes are not set up, the fallback tax rate will effectively be 0%.

Calculate Tax Based On

This setting determines which address to use when applying a tax zone to a price when Manual Tax applies. Most stores charge Tax based on the customer's destination address. However, you can change this to the customer's billing address or your store's shipping origin address.

Shipping Tax Class

This is the tax class used for shipping costs when Manual Tax applies. The Shipping Tax Class comes built-in, but you can optionally create new Tax Classes and select them here if required.

Gift Wrapping Tax Class

This is the tax class used for gift wrapping costs when Manual Tax applies. The Gift Wrapping Tax Class comes built-in, but you can optionally create new Tax Classes and select them here if required.

TAX DISPLAY SETTINGS

Here you can configure two types of tax display settings.

The first is how prices are displayed about Tax within the control panel and invoices. The second is whether taxes are shown as a single line item or broken down in the cart and checkout and on the order and invoices.

For more information on configuring tax display settings for prices displayed on product listing pages, product detail pages, cart, and checkout, see Manual Tax Setup.

Show Prices Within the Control Panel

This setting manages how pricing is displayed within the control panel. You can show line items and subtotals, including or excluding Tax.

Show Prices on Invoices

This setting manages pricing on the storefront order details page and the emailed and printed invoice. You can show line items and subtotals including or excluding Tax, or you can select to use tax zone display settings. This option allows line items and subtotals to be displayed according to the tax zone under which the customer's shipping address falls and requires Manual Tax Setup.

Show Tax Charges in Cart and Checkout

When multiple taxes are applied to an order on the cart and checkout pages, you can choose whether they should appear summed on a single line or if each rate should be broken down on its line. Depending on where you do business, you may need to break down the tax display into different rates; check with a tax professional if unsure.

Show Tax Charges on Orders and Invoices

When multiple taxes are applied to an order on customer order detail pages and invoices, you can choose whether they should appear summed on a single line or if each rate should be broken down on its line. Depending on where you do business, you may need to break down the tax display into different rates; check with a tax professional if unsure.

DEFAULT TAX ADDRESS (OPTIONAL)

This setting overrides the default tax zone configured within Manual Tax Setup.

When a location is configured here, the tax zone configuration corresponding to this location will be used by default instead of the default tax zone.

The default tax zone applies to all remaining locations not already associated with another tax zone. Therefore this setting enables you to select a tax zone that contains a custom list of locations as your default preference.

Note that when a destination address has been provided by your customer and Manual Tax is enabled, the default tax address (and the tax zone that corresponds to it) will not be used. In this scenario, the default tax zone is used.