{"id":64570,"date":"2022-04-11T06:01:48","date_gmt":"2022-04-11T12:01:48","guid":{"rendered":"https:\/\/www.scalahosting.com\/blog\/?p=64570"},"modified":"2023-05-09T04:04:50","modified_gmt":"2023-05-09T10:04:50","slug":"taxes","status":"publish","type":"post","link":"https:\/\/www.scalahosting.com\/blog\/taxes\/","title":{"rendered":"Taxes"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">A <strong>Tax<\/strong> in WooCommerce consists of a <strong>Tax Class<\/strong> containing one or more <strong>Tax Rates<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Tax rates are the actual fees applied to products in the shopping cart. You can set them to vary based on the customer location. This setting can be as broad as a country or region, or as specific as <strong>a ZIP code<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You can apply tax classes to products, shipping, or both. The body of the tax class is presented as a table that consists of separate tax rates, listed as rows.&nbsp; More on that in a bit.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>When setting up taxes for your online store, there are 3 options:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1. <strong>Display product prices inclusive of tax<\/strong><br>&#8211; A product costs $5. You\u2019ve added a VAT tax of 20%. Your visitors will see the price of that product as $6 total, no further details shown.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. <strong>Display product prices exclusive of tax<\/strong><br>&#8211; The $5 product with a 20% VAT tax added to it will display as a $5 product, and the VAT tax will be listed in brackets alongside the shelf price.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3. <strong>Don\u2019t use tax calculations<\/strong><br>&#8211; Have tax rates and calculations disabled across your store. Now people see just the price you have entered.<\/p>\n\n\n\n<p class=\"alert-green wp-block-paragraph\"><strong><em>Note: <\/em><\/strong><em>If you decide to skip on tax calculations initially and enter products with their final price (shelf price + tax), this functionality will just add taxes on top of the products\u2019 price when you enable it later on.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Remember, it\u2019s best to plan ahead when initially adding products and prices. It can save you a lot of time at a later stage.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>You can restore tax calculations anytime by going to:<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1. <strong>WooCommerce <\/strong>\u2192 <strong>Settings <\/strong>from the main menu.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. Locate the <strong>General <\/strong>section of the WooCommerce Settings screen.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3. Look for the <strong>Enable Taxes<\/strong> option and click on it.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. Remember to <strong>Save Changes<\/strong> afterward.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax Options<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When visiting tax settings, the default screen that loads is <strong>Tax<\/strong> <strong>Options<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The Tax screen can be accessed from the main menu of <strong>WooCommerce <\/strong>\u2192 <strong>Settings <\/strong>\u2192 <strong>Tax<\/strong> tab.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1.png\"><img decoding=\"async\" width=\"466\" height=\"99\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1.png\" alt=\"Taxes, Tax Options\" class=\"wp-image-62484\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1.png 466w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1-300x64.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Tax Options<\/strong> is used to manage how tax calculations are performed, add new tax classes as<em> <\/em>rates,<em> <\/em>and manage how taxes are displayed to your customers.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">First off, it\u2019s important to note you can add extra tax classes. They appear in different places across the <strong>Tax Options <\/strong>screen.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By default, there are two additional tax classes present in WooCommerce:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduced rate&nbsp;<\/li>\n\n\n\n<li>Zero rate<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1a.png\"><img decoding=\"async\" width=\"648\" height=\"43\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1a.png\" alt=\"Taxes, Tax Options 2\" class=\"wp-image-62486\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1a.png 648w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1a-300x20.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Take note of these and click on the <strong>Shipping Tax Class<\/strong> drop-down above them.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1b.png\"><img decoding=\"async\" width=\"418\" height=\"183\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1b.png\" alt=\"Taxes, Tax Options 3\" class=\"wp-image-62487\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1b.png 418w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-1b-300x131.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">It displays the two additional tax classes present below the Standard Tax class.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whenever there is a setting allowing you<strong> to pick a tax class<\/strong>, it will always mirror the values of the &#8220;Additional Tax Classes&#8221; fields. You will observe such behavior when working with plugins that extend the taxes feature.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-2.png\"><img decoding=\"async\" width=\"405\" height=\"77\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-2.png\" alt=\"Taxes, Tax Options 4\" class=\"wp-image-62488\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-2.png 405w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-2-300x57.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This section handles how taxes are displayed in your store and types of <strong>additional tariffs<\/strong>, referred to as <strong>Rates<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As we discussed, prices entered with tax can be either tax-inclusive or tax-exclusive. <em>Tax-exclusive<\/em> is the default selection here.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-3.png\"><img decoding=\"async\" width=\"646\" height=\"147\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-3.png\" alt=\"Taxes, Tax Options 5\" class=\"wp-image-62489\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-3.png 646w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-3-300x68.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Calculate Tax Based On<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-4.png\"><img decoding=\"async\" width=\"651\" height=\"42\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-4.png\" alt=\"Taxes, Calculate Tax Based On\" class=\"wp-image-62490\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-4.png 651w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-4-300x19.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Uses the customer\u2019s shipping address by default. Instead, you can have it work with:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Customer Shipping Address<\/strong><br>&#8211; The address of the person receiving the purchase <em>(not necessarily the payer).<\/em><\/li>\n\n\n\n<li><strong>Customer Billing Address<\/strong><br>&#8211; The address of the payer <em>(not necessarily the recipient of the order). <\/em>Billing and shipping addresses are usually different when people purchase gifts.<\/li>\n\n\n\n<li><strong>Shop Base Address<\/strong><br>&#8211; Use this if you prefer your store to function with the presumption that visitors are coming from your area, unless they state otherwise during checkout.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Shipping Tax Class<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6.png\"><img decoding=\"async\" width=\"651\" height=\"43\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6.png\" alt=\"Taxes, Shipping Tax Class\" class=\"wp-image-62491\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6.png 651w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6-300x20.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Allows you to opt-out from the settings in the <strong>Shipping <\/strong>tab by using one of the tax classes you define on this screen. By default, the possible options are:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Shipping tax class based on cart items<\/li>\n\n\n\n<li>Standard<\/li>\n\n\n\n<li>Additional tax classes \u2013 Zero Rate and Reduced Rate being the defaults<\/li>\n<\/ul>\n\n\n\n<p class=\"alert-green wp-block-paragraph\"><strong><em>Note:<\/em><\/strong><em> Adding shipping rates is almost identical to all the tax classes. In fact, shipping is actually a tax class, but it\u2019s been moved to a separate tab since it offers additional functionalities.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-5.png\"><img decoding=\"async\" width=\"326\" height=\"57\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-5.png\" alt=\"Taxes, Shipping Tax Class 2\" class=\"wp-image-62492\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-5.png 326w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-5-300x52.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Rounding<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6a.png\"><img decoding=\"async\" width=\"614\" height=\"31\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6a.png\" alt=\"Taxes, Rounding\" class=\"wp-image-62493\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6a.png 614w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-6a-300x15.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Tax rounding is the process of rounding product prices after tax. If you haven\u2019t done this before and want to have taxes calculated with your product prices \u2014 <strong>check with your local tax authority to see whether prices<\/strong> are rounded up or down to a whole cent. Additionally, note if this calculation is done with the total of the products in the cart or applied to each product individually.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To get <strong>Rounding<\/strong> into context, let\u2019s first map out what the shopping cart looks like on the checkout page:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-7.png\"><img decoding=\"async\" width=\"347\" height=\"540\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-7.png\" alt=\"Taxes, Rounding 2\" class=\"wp-image-62494\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-7.png 347w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-7-193x300.png 193w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Your order is displayed in a table that features:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Column headers<\/li>\n\n\n\n<li>Product lists<\/li>\n\n\n\n<li>Subtotal<\/li>\n\n\n\n<li><a href=\"https:\/\/woocommerce.com\/posts\/shipping-methods-fulfillment-options\/\">Shipping method<\/a> and additional costs<\/li>\n\n\n\n<li>Cart total<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The <strong>Rounding <\/strong>option on the <strong>Tax Options <\/strong>page does exactly what the label says \u2014 it rounds the sales tax up or down to a whole cent. This happens either at the <em>Subtotal<\/em> or at <em>each line of the products list<\/em>, affecting the total tax calculation.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The problem here is that <strong>Rounding per line<\/strong> will not be visible until you set <strong>Display prices during cart and checkout<\/strong> to <strong>Including Tax \u2014 <\/strong>the option located at the bottom of the <strong>Tax Options<\/strong> page.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8.png\"><img decoding=\"async\" width=\"650\" height=\"48\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8.png\" alt=\"Taxes, Rounding 3\" class=\"wp-image-62495\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8.png 650w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8-300x22.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Set this option to <strong>Excluding Tax<\/strong> if you need tax to be rounded at the Subtotal or to <strong>Including Tax<\/strong> for having tax rounded at each line of the products list.<\/p>\n\n\n\n<div class=\"wp-block-group alert-green\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<div class=\"wp-block-group alert-green\"><div class=\"wp-block-group__inner-container is-layout-flow wp-block-group-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><strong><em>Note 1: <\/em><\/strong><em>Once you have entered the tax classes and rates relevant for your business and region, make sure to test how they display on the checkout. WooCommerce has been known to <\/em><a href=\"https:\/\/github.com\/woocommerce\/woocommerce\/issues\/17863\"><em>mishandle tax rounding<\/em><\/a><em> in the past and it\u2019s still unclear if that issue has been fully resolved.&nbsp;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/wordpress.org\/support\/topic\/rpoblem-rounding-taxes-woocommerce\/\"><em>According to WooCommerce users<\/em><\/a><em>, the problem is partly due to the settings for decimal places. You can set your currency to be displayed with 2 decimals (ex. 9.99). However, taxes usually use 4 decimals (ex. 9.1234), and that creates a conflict when rounding.&nbsp;<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><em>Possibly,<\/em><strong><em> the system first rounds up or down the 4 decimals of the price and tax calculation <\/em><\/strong><em>and then rounds the total price according to the decimal number in the currency options. This creates unexpected behavior, ultimately rounding prices down when you need them to be rounded up. In case you are wondering why that\u2019s such a big deal \u2013 <\/em><strong><em>errors in tax reporting as low as 1 cent can get you a fine.<\/em><\/strong><\/p>\n<\/div><\/div>\n<\/div><\/div>\n\n\n\n<p class=\"alert-green wp-block-paragraph\"><strong><em>Note 2:<\/em><\/strong><em> When tax classes share the same name, they are summed together in the total.<\/em><\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8a.png\"><img decoding=\"async\" width=\"356\" height=\"125\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8a.png\" alt=\"Taxes, Rounding 4\" class=\"wp-image-62497\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8a.png 356w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8a-300x105.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">When the tax classes have separate names \u2014 they are broken down.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8b.png\"><img decoding=\"async\" width=\"334\" height=\"145\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8b.png\" alt=\"Taxes, Rounding 5\" class=\"wp-image-62498\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8b.png 334w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-8b-300x130.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Steps for editing tax classes are in the next chapter: <em>Tax Classes and Tax Rates<\/em>.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Display Prices in the Shop<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-9.png\"><img decoding=\"async\" width=\"644\" height=\"43\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-9.png\" alt=\"Taxes, Display Prices in the Shop\" class=\"wp-image-62499\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-9.png 644w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-9-300x20.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Keep this to <strong>Excluding tax<\/strong> if you want the goods in your product catalog to be displayed without any taxes applied.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Once you set it to <strong>Including tax<\/strong>, WooCommerce will attempt to calculate the taxes for products based on the setting you\u2019ve chosen earlier using <strong>Calculate tax based on<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"alert-blue wp-block-paragraph\"><strong><em>Example 1:<\/em><\/strong><em> <\/em><strong><em>Calculate tax based on<\/em><\/strong><em> is set to <\/em><strong><em>Customer shipping address<\/em><\/strong><em>. The customer\u2019s address is in the UK and you have set a tax rate of 10% for the country. The result will be that products in the catalog will have a 10% tax rate applied to their prices, rounded up or down, depending on your settings.<\/em><\/p>\n\n\n\n<p class=\"alert-blue wp-block-paragraph\"><strong><em>Example 2:<\/em><\/strong><em> <\/em><strong><em>Calculate tax based on<\/em><\/strong><em> is set to <\/em><strong><em>Shop base address<\/em><\/strong><em>. Your shop is located in Italy and you don\u2019t have a tax rate added for that location. Your customer visits from the UK and doesn\u2019t see a tax applied to products. Not until they reach the <\/em><strong><em>Cart<\/em><\/strong><em> and <\/em><strong><em>Checkout<\/em><\/strong><em> pages at least.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Price Display Suffix<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-10.png\"><img decoding=\"async\" width=\"658\" height=\"46\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-10.png\" alt=\"Taxes, Price Display Suffix\" class=\"wp-image-62501\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-10.png 658w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-10-300x21.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Use this field to specify a term for indicating that taxes are being included in the product prices. For example, the default value is <strong>inc. VAT<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-11.png\"><img decoding=\"async\" width=\"601\" height=\"228\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-11.png\" alt=\"Taxes, Price Display Suffix 2\" class=\"wp-image-62502\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-11.png 601w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-11-300x114.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"alert-green wp-block-paragraph\"><strong><em>Note:<\/em><\/strong><em> The value of this field will only be visible if <\/em><strong><em>Display prices in the shop<\/em><\/strong><em> is set to <\/em><strong><em>Including tax<\/em><\/strong><em>.<\/em><\/p>\n\n\n\n<p class=\"alert-green wp-block-paragraph\"><strong><em>Also note:<\/em><\/strong><em> The price display suffix is only featured in the <\/em><strong><em>Product<\/em><\/strong><em> and <\/em><strong><em>Catalogue<\/em><\/strong><em> pages, but not in the <\/em><strong><em>Checkout<\/em><\/strong><em> and <\/em><strong><em>Cart<\/em><\/strong><em> pages.<\/em><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><em>Display Tax Totals<\/em><\/strong><\/h3>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-12.png\"><img decoding=\"async\" width=\"645\" height=\"37\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-12.png\" alt=\"Taxes, Display Tax Totals\" class=\"wp-image-62505\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-12.png 645w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-12-300x17.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This drop-down menu is responsible for how tax rates are broken down (or grouped) on the <strong>Checkout<\/strong> page.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By default, tax rates are <strong>Itemized<\/strong>,<strong> <\/strong>which means they are listed separately. Typically, they look like this:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-13.png\"><img decoding=\"async\" width=\"334\" height=\"145\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-13.png\" alt=\"Taxes, Display Tax Totals 2\" class=\"wp-image-62506\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-13.png 334w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-13-300x130.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">You can switch over by choosing the <strong>As a Single Total <\/strong>option. Once activated, the tax breakdown on the checkout page will look like this:<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-14.png\"><img decoding=\"async\" width=\"418\" height=\"76\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-14.png\" alt=\"Taxes, Display Tax Totals 3\" class=\"wp-image-62507\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-14.png 418w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-14-300x55.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"alert-green wp-block-paragraph\"><strong><em>Note: <\/em><\/strong><em>These settings are overridden when all tax rates have the same name and appear as a single total.<\/em><\/p>\n\n\n\n<p class=\"alert-orange wp-block-paragraph\"><strong><em>Explanation: <\/em><\/strong><em>Tax rates come with the predefined name <\/em><strong><em>Tax<\/em><\/strong><em>.<\/em><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Tax rate <\/strong>itemization works only when tax rates have distinctive names. If the name for all rates remains the default, they will all be grouped together because of their indistinguishable names.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Here is an example of how separate products with separate tax classes are displayed:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Shopping cart contains:\n<ul class=\"wp-block-list\">\n<li>Product A\n<ul class=\"wp-block-list\">\n<li><strong>Standard<\/strong> tax class (applied to product A)\n<ul class=\"wp-block-list\">\n<li>tax rate with a default <strong>Tax<\/strong> name<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li>Product B\n<ul class=\"wp-block-list\">\n<li><strong>Reduced rate<\/strong> tax class (applied to product B)\n<ul class=\"wp-block-list\">\n<li>tax rate with a default <strong>Tax<\/strong> name<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">A different tax rate is assigned to each product, but they both use the same default name \u2013 <strong>Tax<\/strong>. As a result, WooCommerce will group the taxes together so that customers don\u2019t see texts such as \u201cincludes 2.95 for Tax and 3.95 for Tax.\u201d<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Tax Classes and Tax Rates<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For this example, we\u2019ll be working with the default tax class, <strong>Standard Rates<\/strong>, although all tax classes work the same.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-15.png\"><img decoding=\"async\" width=\"400\" height=\"61\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-15.png\" alt=\"Taxes, Tax Classes and Tax Rates\" class=\"wp-image-62509\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-15.png 400w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-15-300x46.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Upon visiting the <strong>Standard Rates <\/strong>section of the <strong>Tax<\/strong> settings screen, you are presented with an empty table of tax rates.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-16.png\"><img decoding=\"async\" width=\"906\" height=\"202\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-16.png\" alt=\"Taxes, Tax Classes and Tax Rates 2\" class=\"wp-image-62510\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-16.png 906w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-16-300x67.png 300w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-16-768x171.png 768w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Additional Tax Classes<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">All additional tax classes function in the same manner as the <strong>Standard Rates<\/strong> tax class. Just make sure to give them a distinctive name, so you can easily assign them to the appropriate products.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><strong>Assigning Tax Classes<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Tax classes are assigned at the Product level.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To assign a tax class to an existing product:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">1. Click <strong>Products <\/strong>in the main menu.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">2. <strong>Edit<\/strong> the desired product.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">3. In the <strong>Edit Product<\/strong> screen, scroll down to the <strong>Product Data<\/strong> box.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">4. The <strong>General<\/strong> tab is displayed by default. The last field there is the <strong>Tax Class<\/strong> menu. Use it to select one of the tax classes you created.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-20.png\"><img decoding=\"async\" width=\"654\" height=\"245\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-20.png\" alt=\"Taxes, Assigning Tax Classes\" class=\"wp-image-62511\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-20.png 654w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-20-300x112.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">5. Be sure to <strong>Update<\/strong> your product when making changes in <strong>Product Data<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full mpg-gallery\"><a href=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-21.png\"><img decoding=\"async\" width=\"344\" height=\"115\" src=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-21.png\" alt=\"Taxes, Assigning Tax Classes 2\" class=\"wp-image-62512\" srcset=\"https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-21.png 344w, https:\/\/www.scalahosting.com\/blog\/wp-content\/uploads\/2021\/10\/WooCommerce-Taxes-21-300x100.png 300w\" sizes=\"(max-width: 361px) 660px, (max-width: 767px) 89vw, (max-width: 1000px) 54vw, (max-width: 1071px) 910px, 1140px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">As you have probably noticed, there is much more going on in the <strong>Product Data<\/strong> box. We will cover this in more detail later.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A Tax in WooCommerce consists of a Tax Class containing one or more Tax Rates. Tax rates are the actual &#8230;<\/p>\n","protected":false},"author":106,"featured_media":62424,"comment_status":"open","ping_status":"closed","sticky":false,"template":"single-post-fa.php","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"none","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"both","_seopress_redirections_param":"","_seopress_redirections_type":301,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"footnotes":""},"categories":[126],"tags":[],"class_list":["post-64570","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-woocommerce-hosting"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/posts\/64570","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/users\/106"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/comments?post=64570"}],"version-history":[{"count":5,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/posts\/64570\/revisions"}],"predecessor-version":[{"id":68099,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/posts\/64570\/revisions\/68099"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/media\/62424"}],"wp:attachment":[{"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/media?parent=64570"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/categories?post=64570"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scalahosting.com\/blog\/wp-json\/wp\/v2\/tags?post=64570"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}