Need to set up sales tax? A consumption tax? VAT? Something else? No matter what your store's tax needs are, Volusion is here to meet them. Just click Settings > Tax on your dashboard to get started.
Default Tax Rate
If you want to change the default tax rate for your store — which is set to the state you entered when purchasing your hosting plan — just hit No, I’ll add a new rate in the friendly little pop up that greets you the first time you visit the Tax page.
Automatic Tax Rate Info
For the simplest setup, we recommend using the built-in automatic tax rates feature.
Using Manual Tax Rates
You can also manually configure your store's tax rate, or charge tax for multiple regions, postal codes or states. Just follow these steps:
- Go to Settings > Tax.
- Click the three-dot actions menu icon.
- Make sure Are you based in the United States? option is selected.
- Select Manually manage tax rates.
- Click Save.
You'll see one default tax setting already listed in the Tax table. Click Edit to change the details for this tax rate, or use the following instructions to add a new tax rate:
- Click Add, and fill out the basic information about your state and zip code.
- In the Base Tax Title & Rate fields, enter the tax rate title and the rate itself.
- Clicking the checkbox labelled "Apply to non-taxable items and customers" will apply the tax rate to ALL items and customers. This setting may be required for certain taxing entities. We suggest consulting a tax professional to see if this setting is required for your business.
- Click Save.
You can add as many states and rates as needed to meet your specific tax needs.
For International Merchants
- Click Settings > Tax.
- If your store isn't based in the United States, be sure to (of course!) select No for Are You Based in the United States?
- Once you select No, you’ll see two drop-down menus for configuring types of VAT (Value Added Tax) and GST (Goods & Service) taxes, as well as tax on shipping. Choose your preferences, then click Save.
- Click Add at the top of the page.
- In the Region Country menu, select which country and state or province your business is based in.
- For Base Tax Title & Rate, set the tax rate title and the actual tax rate to be charged.
- For users who have enabled VAT or GST taxes, additional tax rates settings will be configurable: Tax 2 and Tax 3. These will let you control how VAT or other taxes will behave within your store!
- Click Save.
Your store will now begin charging tax based on the settings you've applied!
Deciphering Tax Settings Lingo
Here are some terms on the tax settings that you might want to know:
- Tax Default (the default tax to be applied to a customer's cart, before they enter shipping info).
- Is Vat (enable this option if you need the tax rate to be calculated as Value Added Tax).
- Tax1, Tax2 etc. Title (this is the name of the tax that your customers see).
- Tax1, Tax2 etc. Percent (the percentage of tax that you want to charge).
- Tax1, Tax2 etc Ignore No Tax Rules (this will override any settings for products configured as non-taxable).
- Tax2, Tax3 Include Previous (Allows users to decide how the rate will be applied to the order. The Add to Total Only option will calculate it based on the order total. The Apply to Total and Tax1 option will calculate it with the other taxes added in.)
Tips and Tricks
Display Itemized Taxes
To enable an itemized display of taxes at checkout, go to Settings > Config Variables and enable Display Tax Breakdown to Customer.
This will split out the tax rates on the Shopping Cart and One Page Checkout pages!
Tax on Shipping
If you want to collect shipping tax, go to Tax > Settings and click Settings at the top of the page. Choose your preference from the Tax on Shipping menu, then click Save.
Setting Up Tax-Exempt Products
To set a particular product as tax exempt:
- Go to Inventory > Products.
- Click on the product you want to edit.
- Under Advanced Info > Pricing, set the Taxable Product menu to N.
- Click Save.
Now your product will be tax exempt!
Tax Exempt Customers
Some of your customers may have a tax exempt status (for example, charities or non-profit organizations). Here's how to make a specific customer registered with your store tax exempt:
- Go to Customers > Accounts.
- Click on the ID number of the customer you want to edit.
- In the customer settings, under the header Special Privileges (click the header to view its settings), choose Tax Exempt/Does Not Pay Tax from the menu labeled PaysStateTax.
The customer you edited is now tax exempt and will not be charged any tax by your store.
No matter where your business is located, Volusion makes it easy to configure tax settings. If you have any further tax questions, contact our support team.