Tax Setup

Set up tax zones and rates

You can easily setup your tax settings based on your store's location and needs. The most important thing that you do is first figure out how your tax rates and zones must be set up. Taxes are based upon location, and thus your tax zones will usually be set up that way, as well.

Every country, states and provinces has different tax laws, so make sure to find out which rules and regulations apply to VAT in your area.

Additionally, depending on your store's location there are different rates for items that fall under a different tax rate than your normal taxable items. An example of this type of product would be automobiles. This has their own tax laws and rates versus a books or newspapers. If your products fall under a different tax rates then you need to create Types to be able to assign a tax rates base on the product types. See below Step 3 to learn how to create product types.

This article provides a sample procedure of setting up a 20% VAT in the UK for sales to retail customers. For other tax rates and countries, follow the general procedure but enter specific information that corresponds to your country VAT rate or GST (New Zealand).

To enable a TAX in your store, you follow these general steps:

Step 1 — Set up tax settings

From the Admin panel, select Components >> jMarket >> Shipping >> Preferences
By default the option for Use tax is disabled, you need to enable it for the Tax to work.

Step 2 — Set up Zones to cover which country you want to tax

1. From the Admin panel, select Components >> jMarket >> Shipping >> Zones
2. From the Zone page, click New to create zone
3. Fill in all the required fields, which are indicated by a red asterisk (*). Most of the options obtain a tooltip that will help you explain its usage.
4. Click [ Save ] to save your changes.

Step 3 — TAX Setup

You can only create one (1) TAX for the same zone and product type.
If you have different TAX for each product, you need to create a product type.  Check this article how to create a Product Type.

To better understand, let's take UK as example;

In the UK there are tax rules VAT Standard (20%), VAT reduced (5%), VAT Zero (0%).

For food items is classified as Zero Rate VAT, while cars belongs to the Standard Rate VAT.

In this case you need to create a Product Type that corresponds to your tax rates.

Now lets create a Zone so that we can group the countries. You need to create a Zone for UK customers and outside UK customers to separate them. You cannot charge VAT to non-UK customers. And also even if you don't have buyers outside UK, you still need to create a Zone for outside UK.

After creating a Zone, you can now start to add Tax. Notice that we also created a VAT for inside and outside UK customers.

 
1. From the Admin panel, select Components >> jMarket >> Shipping >> Tax
2. From the Tax page, click New to create Tax
3. Fill in all the required fields, which are indicated by a red asterisk (*). Most of the options obtain a tooltip that will help you explain its usage.
Select the correct product type that correspond to the tax rate and Zone.
4. Click [ Save ] to save your changes.