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Setting Up Tax Rates

You can set different tax rates that can be applied automatically to orders total depending on the customers' country of origin. To this effect:

The mode when taxes are not calculated for an account is called tax exemption. This feature is available for users from all countries, but particularly supported by European Union members due to certain peculiarities of EEC taxation.

To make taxation more secure and strict, you can set the orders processing in such a way that no transactions will be allowed until you verify and approve either both the customer's address (i.e., the tax zone) and VAT number or one of them. Three statuses can be assigned to a customer address or VAT number:

To change the account address verification status, select the Account Director:

  1. Select the Account:
  2. Click the Edit button at the account General Settings form.
  3. Select the address status from the Address verification status drop-down menu.
  4. Click the Update button.

To enter the VAT number, or (and) change the account VAT number, or (and) assign a special tax zone to an account:

  1. Select the account as this described above (item 1).
  2. Select the Financial Info tab.
  3. Click the Edit button.
  4. Change settings:
  5. Click the Update button.

Note 1: If taxation is enabled, the orders amount is calculated in accordance with both the buyer's country and the VAT number (if any), even if the customer's address and VAT number are not checked and approved.

Note 2: If the customer's order is already calculated but not paid yet, and by the moment of the order processing the taxes have been changed, it is not possible to process such an order. In this case you should recreate an order using the Recreate button that appears below the order details.

In This Section

Specifying Tax Rates

Adding Tax Zones

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