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Setting up taxes

As an online merchant, you may need to collect taxes and then periodically forward the collected tax amounts to appropriate tax authorities.

 

Table of content

 


 

Before setting up taxes

Before you begin setting up taxes in SHOPLINE, ensure in the following:

  1. Whether your country of sale needs to charge value-added tax (VAT)/goods and services tax (GST) from customers?

  2. Whether the products you sell are taxable (For example, digital goods are subject to VAT in the European Union.

  3. Whether you need to charge freight tax in the area you sell.

  4. SHOPLINE recommends you seek tax experts to understand the tax-related laws of the country/region you want to sell to. Merchants should always conform to the local tax authority or accountant that the tax rate you charge your customers is correct and that you have correctly declared and paid taxes.

  5. If your product or the store charges customers sales tax/shipping duty, it is recommended that you specify the tax rules in the shopping description, product summary, and describe the taxation in the shipping option. This makes sure that customers are fully notified of the arrangements before checking out.
This function only calculates taxes for the store and collects them from customers. SHOPLINE does not declare or pay taxes for the store.

 


 

Setting up automatic taxes

To set up automatic tax collection from your customer, you will first need to set up delivery zones according to the region that you will be selling to. After setting up delivery zones, the up-to-date tax rates of the region will apply to all products.

To set up automatic taxes:

  1. From your SHOPLINE admin, go to Settings > Taxes and Fees.

    Tax_-_1.png

  2. Enable or edit the tax rates according to the regions available after you have set up your delivery zones.

    Tax_-_2.png

  3. Check the box if taxes are included in the price of products.

    Tax.png

 


 

Taxation by region

Basic consumption tax and custom tax

  • Support country/region (or state) level dimension for setting
  • custom tax
    • Support for setting custom taxes and fees for product categories and shipping costs
    • For a product (or shipping fee), the tax rate set by the custom tax is preferred; if not, the tax rate set by the basic consumption tax is used

Tax calculation

  • Calculation formula:tax = sum of (commodity transaction price * tax rate of matching region) + shipping fee * tax rate of matching region
  • Example:
    • The tax rates for A (shipping), B (commodity), and C (commodity) are set as follows:

commodity

Applicable area

selling price

tax rate

A (shipping fee)

U.S.

$100

3%

U.K.

4%

B (commodity)

China

$200

5%

U.S.

3.5%

Germany

2%

C (Commodity)

Germany

$50

2%

France

6%

 

If there is order information in the left column of the table below, the tax calculation result is: (the data in the table does not consider the currency)

Order

commodity

Shipping address

Tax Calculation Results

1

1A+1B

U.S.

100*3% + 200*3.5% = 10

2

1A+1B

China

0 + 200*5% = 10

3

1B+2C

Germany

200*2% + 2*50*2% = 6

4

1B+1C

France

0 + 50*6% = 3

 

 


 

Get in Touch

SHOPLINE has a specialized Merchant Success Team available to assist you with any questions or issues. Please feel free to contact us via the chatbox in the lower right corner of your SHOPLINE admin panel or on the SHOPLINE official website. We are always here to support you every step of the way and help your business thrive.

 


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