Add a Tax

Overview

A tax defines a single rate (or a connection to a tax service) and the conditions under which it applies. After creating a tax, attach it to one or more categories so it takes effect.

Steps

1. 1

   Go to the Foxy admin.

2. 2

   Go to Settings -> Taxes.

3. 3

   Add a new tax.

4. 4

   Enter a Name and choose a Type.

5. 5

   Depending on the type, set a Fixed rate, or turn on Calculate tax automatically and choose a Service provider. Set the location if the type needs it.

6. 6

   Set the Exempt all customers with Tax ID and Apply to shipping and handling toggles as needed.

7. 7

   Click Create.

8. 8

   Open the tax and, in the Item categories section, check the categories it applies to. These selections are saved immediately. See Apply a tax to a category.

Tax options

The available options depend on the tax type. A Global tax shows Name, Type, Fixed rate, and the two toggles. Country, Regional, and European Union taxes also show Calculate tax automatically; when that is on, a Service provider appears and the Fixed rate and Apply to shipping and handling options are hidden.

• Name is shown to your customer and included in API responses and the transaction datafeed.

• Type determines when the tax applies (see the table below).

• Country, region, city are the location values the tax type uses. Fill in only the levels the chosen type needs.

• Calculate tax automatically lets Country, Regional, and European Union taxes set their rate automatically instead of using a fixed rate. See Use automatic tax rates in the US and Canada and Set up EU VAT.

• Service provider chooses who calculates the tax when automatic calculation is on: Foxy Default (Thomson Reuters; others), Avalara AvaTax 15, Thomson Reuters ONESOURCE, or TaxJar. See Third-party tax services overview.

• Fixed rate (%) is the rate as a percentage. Enter 17.5 for 17.5%, not 0.175. Hidden when automatic calculation is on.

• Use the origin country tax rates (European Union taxes) applies your store's country's VAT rate to all EU customers instead of each customer's local rate. See Set up EU VAT.

• Exempt all customers with Tax ID removes this tax for customers who provide a tax ID. See Exempt customers with a tax ID.

• Apply to shipping and handling also applies the tax to the shipping and handling amount. Hidden when automatic calculation is on.

• Item categories is where you select the categories this tax applies to; changes are saved immediately. See Apply a tax to a category.