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Configuring Tax Rates By Postal Code

Utilize postal code groups to customize tax zones and set rates for products, product categories, and shipping fees. This feature offers flexibility in configuring tailored tax structures that align with your business needs, ensuring efficient and targeted taxation management.

Note: Customizing tax rates by postal code may not be available for all merchants or regions. To enable this feature or to activate regions beyond the US, contact your SHOPLINE Merchant Success Manager.

 

 

Customizing Postal Code Tax Rates for Countries/Regions

You can establish tax rates based on postal codes for specific countries or regions by following these steps:

  1. From your SHOPLINE admin panel, go to Settings > Taxes and Fees.
    1.1 Settings _ Taxes and Fees.png

  2. In the "Tax Collection Areas" section, click the Edit icon next to the country/region for which you want to set up postal code tax rates, using the United States as an example.
    1.2 Click the Edit icon.png

  3. Locate the "Postal code taxes for United States" section and click Go to Settings.
    1.3 Postal code taxed in United States _ Go to Settings.png

  4. On the settings page, provide the necessary information for the postal tax group. Create new groups if needed. Once configured, click Update.
    1.4 Necessary information _ Update.png
Notes: 
  • When conditions match all types of tax rate configurations, the priority of effect will be: custom postal code tax rate > postal code for countries/regions > state tax rate > tax rate across the territory.
  • By default, the configuration for postal code tax rates is available only for the United States. To activate this feature for other countries/regions, please contact your SHOPLINE Merchant Success Manager.

 

 

Customizing Postal Code Tax Rates for Categories or Shipping

After establishing custom tax rates for product categories or shipping fees, you can further tailor postal code tax rates for each. Follow these steps:

  1. From your SHOPLINE admin panel, go to Settings > Taxes and Fees.
    2.1 Settings _ Taxes and Fees.png

  2. In the "Tax Collection Areas" section, click the Edit icon next to the country/region for which you want to set up postal code tax rates, using the United States as an example.
    2.2 Click the Edit icon.png

  3. Locate the "Custom tax rate" section and click Add custom tax rates to configure tax rates for product categories or shipping fees.
    2.3.1 Custom tax rate _ Add custom tax rates.png

  4. Once configured, click Confirm to save the settings.
    2.3.2 Click the Confirm button.png

  5. On the specific product category or shipping fee where you want to set up postal code tax rates, click Go to Settings within its postal code taxes section.
    2.4 Custom tax rate _ Go to Settings.png

  6. On the settings page, provide the necessary information for the postal tax group. Create new groups if needed. Once configured, click Update.
    2.5 Necessary information _ Update.png
Notes: 
  • When conditions match all types of tax rate configurations, the priority of effect will be: custom postal code tax rate > postal code for countries/regions > state tax rate > tax rate across the territory. 
  • By default, the configuration for postal code tax rates is available only for the United States. To activate this feature for other countries/regions, please contact your SHOPLINE Merchant Success Manager.

 

 

Importing Postal Code Tax Rates

To efficiently manage and update configured postal code taxes, you can download templates for postal code tax rates to record and update your data. Follow these steps:

  1. From your SHOPLINE admin panel, go to Settings > Taxes and Fees.
    3.1 Settings _ Taxes and Fees.png

  2. In the "Tax Collection Areas" section, click the Edit icon next to the country/region for which you want to set up postal code tax rates, using the United States as an example.
    3.2 Click the Edit icon.png

  3. To import postal code tax rates [for Countries/Regions], locate the "Postal code taxes for United States" section and click Go to Settings.
    3.3.1 Postal code taxed in United States _ Go to Settings.png

    To import postal code tax rates [for Categories or Shipping], find the product category or shipping fee where you want to import postal code tax rates in the "Custom tax rate" section and click Go to Settings in its postal code taxes section.
    3.3.2 Custom tax rate _ Go to Settings.png
  1. On the settings page, click Import tax rate and download and upload the Postal code tax rates template.
    3.4 Import tax rate _ download Postal code tax rates template.png

  2. Refer to the Import File Example for instructions on filling in the file. 

  3. Upload the template and click Import.
    3.5 Upload template _ Click Import.png

Once the import is successful, the data should be overwritten and updated.

Import File Example

Province Code Postcode Tax Name Tax Tate%
BH 10001-10089,11001-11089 Tax 1 12.13
CV 100*,200*,300* Tax 2 10
  • Province Code: Adheres to ISO 3166-2 standards. If the province code is left empty, the country code will be used. Refer to the Country Code list.
  • Postcode: Enter postal codes, separated by commas. For groups, use an asterisk (*) after initial characters or a hyphen (-).
  • Tax Name: Enter a custom tax name; if blank, the default tax name will be used.
  • Tax Rate%: The tax rate unit is %. Pay attention to accurate number entries.
Note: By default, the configuration for postal code tax rates is available only for the United States. To activate this feature for other countries/regions, please contact your SHOPLINE Merchant Success Manager.

 

 

Enabling and Disabling Postal Code Tax Rates 

If, for any reason, you need to temporarily disable the effect of configured postal code tax rates, follow the instructions below:

  1. From your SHOPLINE admin panel, go to Settings > Taxes and Fees.
    4.1 Settings _ Taxes and Fees.png

  2. In the "Tax Collection Areas" section, click the Edit icon next to the country/region for which you want to set up postal code tax rates, using the United States as an example.
    4.2 Click the Edit icon.png

  3. To enable/disable postal code tax rates [for Countries/Regions], locate the "Postal code taxes for United States" section and click Go to Settings.
    4.3.1 Postal code taxed in United States _ Go to Settings.png

    To enable/disable postal code tax rates [for Categories or Shipping], find the product category or shipping fee where you want to import postal code tax rates in the "Custom tax rate" section and click Go to Settings in its postal code taxes section.
    4.3.2 Custom tax rate _ Go to Settings.png
  1. Toggle the activation button in the upper right corner to enable or disable the application of the configured postal code tax rates.
    Regions).png
Note: By default, the configuration for postal code tax rates is available only for the United States. To activate this feature for other countries/regions, please contact your SHOPLINE Merchant Success Manager.

 

 

Deleting Postal Code Tax Rates

To delete or reset a postal code group, follow the steps below:

  1. From your SHOPLINE admin panel, go to Settings > Taxes and Fees.
    5.1 Settings _ Taxes and Fees.png

  2. In the "Tax Collection Areas" section, click the Edit icon next to the country/region for which you want to set up postal code tax rates, using the United States as an example.
    5.2 Click the Edit icon.png

  3. To delete postal code tax rates [for Countries/Regions], locate the "Postal code taxes for United States" section and click Go to Settings.
    5.3.1 Postal code taxed in United States _ Go to Settings.png

    To delete postal code tax rates [for Categories or Shipping], find the product category or shipping fee where you want to import postal code tax rates in the "Custom tax rate" section and click Go to Settings in its postal code taxes section.  
    5.3.2 Custom tax rate _ Go to Settings.png
  1. Click on the Delete icon to remove individual groups or click on the Reset button in the lower-left corner to reset all the groups.
    5.4.1 Necessary information _ Update.png

  2. Once configured, click Update.
Note: By default, the configuration for postal code tax rates is available only for the United States. To activate this feature for other countries/regions, please contact your SHOPLINE Merchant Success Manager.

 

 

Matching Postal Code Tax Rates (with an Example)

When calculating consumption taxes for customers at checkout, the application of customized postal code tax rates follows these rules:

  1. If postal code tax rates are enabled for product categories, and the purchased product belongs to multiple categories, the rate configured for the first category will be applied.
  2. When the country and postal code of the shipping address match the configured rules, the postal code tax rate is applied.
  3. Customized tax rates for product categories and shipping fees take precedence over state tax rates. In other words, if conditions match both tax rates, the postal code tax rate will be applied.
  4. The priority of tax rate application for custom tax rates is: postal code tax rates > state tax rates > tax rates across the territory. 

Tax Calculation Example 

Assume you have configured the following tax rates:

  • Nationwide tax rate of 8% for the United States
  • Regional tax rate of 9% for California
  • Postal code tax rate of 8.5% for a specific region named Los Angeles using the postal code group
    "90001-90068,90070-90084,90086-90097,90099,90101-90103,90174,90185". 

Additionally, you have separately configured a custom tax rate for the outdoor category in California, with a regional tax rate of 7% and the same postal code group for Los Angeles, but with a postal code tax rate of 6%.

Shipping Address Order Item Tax Rate
USA, California, Los Angeles, 90034 Household washing machine 8.5%
USA, California, Los Angeles, 90034 Hiking poles 6%
USA, California, Los Angeles, 90189 Household washing machine 9%
USA, California, Los Angeles, 90189 Hiking poles 7%
USA, California, San Francisco, 94110 Household washing machine 9%
USA, California, San Francisco, 94110 Hiking poles 7%
USA, Florida, Miami, 33121 Household washing machine 8%
USA, Florida, Miami, 33121 Hiking poles 8%
Note: Hiking poles belong to the outdoor category, while washing machines belong to the household appliance category.