The amount of tax to be charged is based on a number of factors, location of the buyer, product class and customer class. JadaSite allows user to define the tax(es) to be charged by location, product type and customer type. It also allows user to configure if tax(es) should be charged for shipping charges. This means you can collect one tax for dairy items and another tax for clothing items. It also provides flexibility to charge one tax for normal retail customer and another tax for wholesale customer.
To configure tax(es), you should first define different tax(es) that are to be charged. You can then define the location where tax(es) should be charged and the type of tax(es) to be charged for each product class and customer class combination.
Creates tax rate
Tax rate are created via Store -> Taxes -> Tax Rates. Clicks new to create tax rate.
Tax code - Short abbreviation for the tax.
Tax name - Name of the tax
Tax rate - The rate in percentage.
Published - Specify if this tax is published (active).
Creates tax region
Tax region are created via Store -> Taxes -> Tax Regions. Clicks new to create tax region.
Tax region description - Description of the tax region.
Shipping and handling product class - Specify the product class that shipping and handling charges for this region belongs to. If it is not specified, tax will not be applied for shipping and handling for this region. If a value is specified, the tax(es) to be charged for this product class need to be defined (in the same screen) in order to charge tax(es) for shipping and handling.
Once a tax region is created, the following configuration is required.
- Configure shipping destination that belongs to this region. Shipping destination can be make up of countries and states as well as zip code. This is to allow fine grain control of tax calculation down to the zip code level. Clicks Option -> Add region to add countries and states. Clicks Option -> Add zip code to add zip code to this shipping region.
- Clicks 'Add Product' to add the product class to this region. This is to enable tax calculation for all items in this product class.
- Once a product class is added, clicks 'Add customer' to specify the customer class to charge tax for. If there are other customer class in the system and you want to charge tax(es) on them, you can add them into the product class here.
- Once the customer class is added, you can start configuring the tax(es) to be charge on them by clicking Options -> Add tax. If more than one tax is required, they should be added in here. Once taxes are added, you will see a sequence field besides the tax rate. This field is being used when more than one tax is configured. If the sequence are the same for the taxes, simple calculation is performed meaning the tax rates are added together and applied to the product. If the sequence are different for the taxes, compound calculation is performed. This means tax rate with the lower number is applied to the product followed by tax rate with the higher number.