Previously toldPrice and Tax Settings in WooCommerce, this article is now a detailed step-by-step guide, put together specifically for those running an online store on the WooCommerce platform, that will show in detail how to configure tax settings that are appropriate for the store. While the article will provide some specific steps to achieve certain tax goals.take note of, as each store has a different business model and needs, these programs are not set in stone, but rather serve as a source of reference and inspiration.

Scenario 1: Charge customers the same tax rate as the store address

Suppose the store is in South Africa. It charges 15% VAT on all customers regardless of where they buy from or ship to. It shows the price of all products including tax.

The result of this setup is that all customers see and pay the same price including tax for products throughout the store.

To achieve this result, follow the steps below. Use the default values where the settings are not specifically mentioned.

Scenario 1 General Settings

1. switch toWooCommerce > Settings > General and set theStore AddressSet to Cape Town, South Africa. 
2. Sets the default client locationset toStore Country/RegionThe 
3. By checking theEnabling tax rates and calculations totax-enablingThe
4. Scroll to the bottom and click "Save Changes"The 

Scenario 1 Tax Setup

1. switch toWooCommerce > Settings > Tax > Tax OptionsThe 
2. Enter the tax-inclusive price into theset toYes, I will enter the price including taxThe 
3. set upgroundStore siteCalculate the tax. 
4. Display the price in the storeset totax inclusive
5. Change the price displayed in the shopping cart and at checkoutset totax inclusiveThe 
6. Tax gross-ups will be shownset toAs a single totalThe 
7. click (using a mouse or other pointing device)"Save changes"The 

Scenario 1 Tax rates

1. go tostandard rate(sub-tab near the top of the screen)
2. click (using a mouse or other pointing device)insertion lineButton. 
3. existRate %Column Enter15The 
4. existname of taxIn the field, entervalue-added tax (VAT)The 
5. click (using a mouse or other pointing device)"Save changes"The 

Tests using a variety of addresses inside and outside the country where the store is located to verify that the tax effort is working as expected.

Scenario 2: Taxing only certain countries based on the customer's shipping address

In this case, let's say the store is in the UK and sells worldwide. It only levies shopping tax on customers from 3 countries according to their shipping address: 20% in the UK, 19% in France and 25% in Norway. it does not levy tax on customers shipping to other places. Due to the different tax rates, it shows the product price without tax.

The result of this setup is that all first time visitors see the same price of the product excluding tax. Once the shipping country is added in the address field on the shopping cart/checkout page, the tax is calculated based on the tax rate for each of the 3 countries. If the customer's shipping address is not in any of the 3 countries, the price will continue to be shown as excluding tax and no tax will be charged.

To achieve this result, follow the steps below. Use the default values where the settings are not specifically mentioned.

Scenario 2 General Settings

Scenario 2 Tax Setup

1. switch toWooCommerce > Settings > Tax > Tax OptionsThe 
2. Enter the tax-inclusive price into theset toNo, I will enter the price without taxThe 
3. set upgroundour customersdelivery addressCalculate the tax. 
4. Display the price in the storeset toexcluding taxThe
5. Change the price displayed in the shopping cart and at checkoutset toexcluding taxThe 
6. Total tax amount will be displayedset toitemize(to show the name of the tax rate).
7. click (using a mouse or other pointing device)"Save changes"The 

Scenario 2 Tax Rates

1. switch tostandard rate(sub-tab near the top of the screen).
2. click (using a mouse or other pointing device)insertion linebutton to enter the first tax rule. 
3. existcountry codeIn the field, enterGB(UK 2-digit code).
4. existRate %Column Enter20The 
5. existname of taxIn the field, entervalue-added tax (VAT)The 
6. click (using a mouse or other pointing device)insertion linebutton to enter the second tax rule. 
7. existcountry codeIn the field, enterFR(2-digit code for France).
8. existRate %Column Enter19The 
9. existname of taxIn the field, enterTVAThe 
10. click (using a mouse or other pointing device)insertion linebutton to enter Tax Rule #3. 
11. existcountry codeIn the field, enterNO(2-digit code for Norway).
12. existRate %Column Enter25The 
13. existname of taxIn the field, enterMVAThe 
14. click (using a mouse or other pointing device)"Save changes"The

Tests using a variety of addresses inside and outside the country where the store is located to verify that the tax effort is working as expected.

Scenario 3: Use national taxes, except in specific states, to add additional taxes for specific ZIP codes

The example store in this program is located in California. It sells and ships only within the United States. The store charges 7% tax on sales shipped within the state, and an additional 2% tax if shipped to a zip code of 90210. Sales shipped to any other state are charged 6% tax. The order in which the tax rules appear in the Priority is important because the first rule to match will be used.

The result of this situation is that all visitors see prices without tax until they enter the delivery details on the cart/checkout page, after which one or more taxes are levied depending on the rate.

To achieve this result, follow the steps below. Use the default values when the settings are not specifically mentioned. 

Scenario 3 General Settings

1. switch toWooCommerce > Settings > Generaland willStore AddressSet to a California address. 
2. By default, theDefault Client LocationSet to no location (new users will not see any tax information until they enter their shipping address). 
3. By checking theEnabling tax rates and calculations totax-enablingThe
4. Scroll to the bottom and click "Save Changes"The 

Scenario 3 Tax Setup

1. switch toWooCommerce > Settings > Tax > Tax OptionsThe 
2. Enter the tax-inclusive price into theset toNo, I will enter the price without taxThe 
3. set upgroundour customersdelivery addressCalculation of tax .
4. Display the price in the storeset toexcluding taxThe
5. Change the price displayed in the shopping cart and at checkoutset toexcluding taxThe 
6. Total tax amount will be displayedset toitemize(to show the name of the tax rate).
7. click (using a mouse or other pointing device)"Save changes"

Scenario 3 Tax Rates

1. switch tostandard rate(sub-tab near the top of the screen).
2. click (using a mouse or other pointing device)insertion linebutton to enter the first tax rule. 
3. existcountry codeIn the field, enterUS(US 2-digit code).
4. existState codeEnter CA (California 2-digit code) in the field.
5. existRate %Column Enter7.
6. existname of taxIn the field, entertollThe 
7. existprioritizationColumn Enter1The 
8. click (using a mouse or other pointing device)insertion linebutton to enter the second tax rule. 
9. existcountry codeIn the field, enterUSThe 
10. existPostal code/ZIPColumn Enter90210*(We add the wildcard (*) to apply this rule to ZIP+4 code as well).
11. existRate %Column Enter2The
12. existname of taxIn the field, enterBH TaxThe 
13. existprioritizationColumn Enter2The 
14. click (using a mouse or other pointing device)insertion linebutton to enter Tax Rule #3. 
15. existcountry codeIn the field, enterUS The
16. existRate %Column Enter6The 
17. existname of taxIn the field, entertollThe 
18. existprioritizationColumn Enter1The 
19. click (using a mouse or other pointing device)"Save changes"The 

It will be noticed that the rules are automatically rearranged and grouped by priority after saving.

Here's how to assess tax rules when a client enters an address:

• possessPriority 1Taxes will first be assessed from top to bottom according to the rules in the table. 
• The first criterion for the first rule is that the address is located in the United States. 
• If so, the second criterion is that the address is located in California. 
• If so, the rate of 7% will apply and the assessment will be transferred to thePriority 2Taxes. 
• If the address is not located in California, it will go to the next Priority 1 tax rate and apply that rate. 
• Next, to theprioritization 2 ofTaxes are assessed. 
• WooCommerce Check if the address is located in the United States. 
• If so, it will check if the zip code starts with 90210. 
• If this occurs, the tax rate of 2% applies (as opposed to thePriority 1(Taxes together).
• If the zip code does not begin with 90210, the rate will be ignored and only onePriority 1 Taxes.

The chart below shows how different tax rates apply to different addresses.

First, Hiouochi is located in California, but not within a specific zip code, so only the 7% tax applies.

Next, 90210 is both located in California and matches a specific zip code where we use the 2nd tax rate. As planned, this address will be taxed 2 times.

Our last address is located in Ann Arbor, Michigan, so only the more common U.S. tax applies.

Scenario 4: Use of the highest additional freight rate when the standard rate is not used

By default, the shipping tax depends on thestandard rateCategory. If the order does not have astandard rate products, or if you don't use the tax, use theThe first of the additional tax rates. In this case, make sure that your top tax rate is in theadditional taxIt is listed first in the section, as shown below.

Note the additional categories:Tax A,Tax Bcap (a poem)Taxes C. By making a provision in theSurtax categoryAdd a name to the settings andSave changes toCreate them. The name is displayed as a sub-tab at the top of the screen.standard rateCategories cannot be deleted, but will be ignored if left blank.

The chart below shows the tax rules without anyStandard tax rate category, therefore null.

In the figure below.AThe highest rate of tax in the category is 24% and is therefore at the top of the list. A row has been added to the table of tax rates wherecountry codeset toUS(math.) genusTax rate %set to25(math.) genusname of taxset toTax 24%(math.) genusprioritizationset to1The default values are used for the rest of the columns. Default values are used for the remaining columns.

The chart below shows that the next one isTax B category. It is the same as Tax AThe same, except that here theRate %because of14both (... and...)Tax Namebecause ofTax 14%The

In this figure.The Tax C category is entered last and is set up the same as the Tax BSame, exceptTax rate %because of10%(math.) genusname of taxbeTaxation 10%The

The result of this situation is that when creating an order containing multiple products (each with one of the above tax rates), the highest tax rate will be used for shipment.

In the example order below, we can see that Product 1 has a tax rate of $84 (for a $350 product). 10 dollars offlat-rate freightis $2.40. In calculating the total amount of the 24% rate, we find that the total amount is the sum of these components, which is $86.40, thus confirming that the 24% rate applies to the freight charges, as we thought it would.

Scenario 5: Taxing physical goods in one place, but taxing virtual goods everywhere

The result of this situation is that when creating an order containing multiple products (each with one of the above tax rates), the highest tax rate will be used for shipment.

In the order example below, we can see that Product 1 has a tax rate of $84 (for a $350 product). the $10 flat-rate shipping charge is $2.40. When calculating the total amount for the 24% rate, we find that the total amount is the sum of these components, which is $86.40, thus confirming that the 24% rate applies to the shipping charges.

Scenario 5 General Settings

1. switch toWooCommerce > Settings > Generaland willStore AddressSet to a Kentucky address. 
2. By default, theDefault Client LocationSet to no location (first time visitors will not see any tax information until they enter their shipping address). 
3. By checking theEnabling tax rates and calculations totax-enablingThe
4. Scroll to the bottom and click "Save Changes"The 

Scenario 5 Tax Setup

1. switch toWooCommerce > Settings > Tax > Tax OptionsThe 
2. Enter the tax-inclusive price into theset toNo, I will enter the price without taxThe 
3. set upgroundour customersdelivery addressCalculate the tax. 
4. existSurtax categoryAdd a new category to, for examplevirtual good(We'll assign it to a product later).
5. Display the price in the storeset toexcluding taxThe
6. Change the price displayed in the shopping cart and at checkoutset toexcluding taxThe 
7. For "Showing total tax revenue" read "Showing total tax revenue"set to"Itemized"(Optional, this setting displays the tax rate name).
8. click (using a mouse or other pointing device)"Save changes"The 

Scenario 5 Tax Rates

1. switch tostandard rate(sub-tab near the top of the screen).
2. click (using a mouse or other pointing device)insertion linebutton to enter the first tax rule. 
3. existcountry codeIn the field, enterUS(US 2-digit code).
4. existState codeEnter KY (the 2-digit code for Kentucky; the rate now applies to Kentucky only) in the field.
5. existRate %Column Enter6.
6. existname of taxIn the field, enterKY Tax(Optional). 
7. click (using a mouse or other pointing device)Save ChangesButton.

1. Next, moving to the tax types we created in the previous section.Virtual Goods Tax Rate(shown as a link near the top)
2. click (using a mouse or other pointing device)insertion linebutton to enter the first tax rule in this category.
3. existRate %Column Enter6.
4. existname of taxIn the field, entertoll(Optional). 
5. click (using a mouse or other pointing device)Save ChangesButton. 

This rate applies to all customers, but since it is part of theSurtaxand defaults to thestandard rate, so it only applies to products to which we apply it exclusively. We'll do that next.

Scenario 5 Product Setup

1. switch toofferingsfurthermoreAdd New Productor edit an existing product.
2. Any physical products shipped can continue to be usedstandard rateThe
3. For virtual products, it would beProducts > Product Data > General > Taxesset tovirtual goodThe
4. After editing the product, click"Update" to save the changes.

The images below show the transportable products ofTax categoryset to"Standards"The

Here's another image, this time showing the virtual productTax categoryset tovirtual goodThe

After completing the above settings, the store can start collecting taxes. The image below shows the shopping cart page with two products calledShippable Good($20) andVirtual Good($10). The address to enter the shipping calculator is Lexington, KY. Itemized taxes are shown to applyKentucky state taxcap (a poem)virtual goods taxThe

The image below shows the same shopping cart as above, except the address is now set to Ann Arbor, MI. The itemized tax display only appliesvirtual goods taxThe tax is $0.60 and applies only to thevirtual goodThe