Tax Settings

Watch this tutorial to learn how to: Tax Settings.

Steps in this tutorial

1. In this tutorial you will switch on VAT, set the rate, and see exactly what each display mode does to what your customer pays.
2. Open Settings from the sidebar.
3. Open the VAT and Tax page.
4. The page starts with a single switch. Everything else appears once tax is on.
5. Turn tax on. This applies to every new order in the store.
6. Three fields appear: the rate, the label the shopper reads, and how prices are shown.
7. Set your country rate. Fifteen percent here.
8. Name it the way your invoices do. This is the word the customer sees on the total.
9. This is the one that changes what people pay. Exclusive adds the tax on top of your prices.
10. Save the settings.
11. Saved. It applies to new orders from now on; existing orders keep the tax they were placed with.
12. Now the shopper side, where the difference between the two modes actually shows.
13. With exclusive, the VAT is a line of its own and the total goes up by it.
14. Back in settings, switch the mode to inclusive and change nothing else.
15. Save again.
16. Same product, same fifteen percent, but the total has not moved. The tax is marked as already inside the price.
17. That is VAT set up. Pick exclusive if you quote prices before tax, inclusive if your shelf price is the price people pay.