Define a new location-based tax rate

Tax regulations in your country may require you to collect taxes based on the destination of the order. If your business must collect taxes for particular locations, you will need to define taxes for those locations that your business delivers to.

Prerequisites

• You must have Administrator permission to use this feature.

To define a location-based tax:

1. Log into your DecoNetwork Website.
2. Browse to Admin > Settings > Taxes.

   Select Current Taxes.

   

   

   The Current Taxes page is displayed.

   
3. Click Add Tax to configure a new tax.
4. Select This tax is automatically applied based on location rules in the Tax rules section.
   
5. Configure the Tax details.
   
   • Name: enter a name for the tax.
   • Description: enter a description for the tax.
   • Rate: enter the tax percentage rate.
   • Tax is on by default: this checkbox allows you to enable/disable the tax. Initially, it will be ticked.
   • Tax Group: assign the tax to a tax group. Tax groups allow you to easily apply/remove a tax collectively from a quote or order. Click here for instructions on how to configure tax groups.
6. Configure the Tax locations.

   These settings allow you to set to what destination the tax applies at the international and state level.

   
   • This is a domestic tax: leave this checkbox ticked to apply the tax within your company's country of operation. Otherwise, un-tick it to reveal a drop-down box allowing you to select a country to which the tax will apply.
     
   • Only applied when delivering within state (not interstate): if "This is a domestic tax" is ticked, you also have the option of only applying the tax within your state.
     
   • Applies to all states: If this checkbox is ticked, the tax will be applied to all states within the country indicated by the first checkbox/country drop-down box. If un-ticked, you will be able to set the states to which the tax will apply below.
     
7. Configure the Location Filter to limit this tax rate to particular locations.
   

   Specify the zip codes for the locations where this tax rate will be applied in the Zip code filter field.

   You can specify a single zip code or multiple zip codes, including zip code ranges.

   Specify the zip codes in a comma-separated list with no spaces, e.g. 5877,6000-7000,8776,5666,7333-99999

8. Configure the options for Taxing other taxes.
   
   • This tax applies to other taxes: lets you select the taxes to which this tax will be applied.

     When this checkbox is ticked, this tax will be applied to item sale prices that are inclusive of the selected taxes. This setting is useful if you are in a region that requires you to collect taxes/duties on taxes.

     For example, you are liable to pay import duty for a particular brand of t-shirt that you sell. Say that the sale price of the item is $100 and import duty is 5%. You are also required to pay GST of 10% on the product. This tax will be applied as follows.

     Import tax inclusive sale price: $100 + ($100 x 5%) = $105

     This tax (GST): $105 x 10% = $10.50

9. When done configuring, click Save.