This documentation covers how to set up tax rates in WooCommerce, as well as how the platform handles taxes\/VAT\/GST based on these settings \u2014 not<\/strong> when or what to charge.<\/p>\n\n\n\n We are not tax professionals<\/strong>; our advice only applies to how to use our software. For advice on what \u2014\u00a0or when \u2014 to charge tax\/VAT\/GST etc., we recommend consulting a tax professional or accountant.<\/p>\n\n\n\n Every business is unique, and we are unable to cover all possibilities here.<\/p>\n<\/div>\n\n\n\n To configure taxes in WooCommerce you first need to enable the Tax<\/strong> settings tab by following the steps below: <\/p>\n\n\n\n Once enabled, access the WooCommerce tax settings in the Tax tab<\/strong> by going to WooCommerce > Settings > Tax<\/em>.<\/p>\n\n\n\n Your choices for these options depend on the tax jurisdiction your store is located in. Check with your accountant to ensure your tax configuration is suitable for your store. Continue below to get acquainted with each setting, or review our guide to configuring common tax scenarios<\/a>.<\/p>\n\n\n\n The Prices entered with tax<\/em><\/strong> option is perhaps the most important setting when you manage taxes in your store. It determines how you enter your product prices.<\/p>\n\n\n\n There are two options to choose from:<\/p>\n\n\n\n For example, let’s say you want a product to cost \u00a39.99 including taxes, your store is UK-based, and the tax rate is 20%.<\/p>\n\n\n\n Learn more about how taxes are calculated in WooCommerce<\/a>\u00a0and refer to the\u00a0rounding section<\/a><\/strong>\u00a0below for how this tax setting might be affected by other settings.<\/p>\n\n\n\n Use the Calculate tax based on<\/em><\/strong> setting to tell WooCommerce which address to use for tax calculations.<\/p>\n\n\n\n There are three options to choose from:\u00a0<\/p>\n\n\n\n Options 1 and 2 require customers to enter the respective address.<\/p>\n\n\n\n If option 3 (Shop base address<\/strong><\/em>) is selected, the taxes are always calculated based on your store\u2019s location regardless of the customer\u2019s address.<\/p>\n\n\n\n The Shipping tax class<\/em><\/strong> setting draws from tax classes<\/a>. It is used to indicate how WooCommerce should calculate tax on the cost of shipping. Each tax class in your shop appears as an option here.<\/p>\n\n\n\n This setting always has at least the following options:\u00a0<\/p>\n\n\n\n The setting defaults to the first option, Shipping tax class based on cart items<\/em><\/strong>. In this case, shipping tax is inherited from the tax class assigned to the product or products being shipped.\u00a0<\/p>\n\n\n\n For example, if a product, like baby clothes, has been assigned a reduced tax class, then the tax rate from that class would also apply to the shipping charge. If your jurisdiction treats shipping differently, assign a specific tax class to this setting to use that for shipping instead.<\/p>\n\n\n\n In cases where there are multiple products with different tax rates in the order, the shipping tax is applied as follows:<\/p>\n\n\n\n If you don\u2019t use the Standard rate<\/em><\/strong> tax class on your products, and if you need the highest tax rate from other tax classes to apply to shipping, make sure your highest tax rate is listed first<\/strong> in the Additional tax class<\/em><\/strong> section. See a detailed example<\/a>.<\/p>\n\n\n\n Tick the Round tax at subtotal level, instead of rouding per line<\/strong> checkbox to calculate rounding at the subtotal level instead of on a per-line basis.<\/p>\n\n\n\n In certain circumstances, this could lead to slight variances. Confirm if this is required for your store by consulting your accountant or checking your tax jurisdiction. <\/p>\n\n\n\n Off-by-one rounding errors<\/strong><\/p>\n\n\n\n Off-by-one rounding errors are not affected by this setting. These can result if a series of three other tax display settings are not all set to either include or exclude tax<\/strong>.<\/p>\n\n\n\n The series consists of:<\/p>\n\n\n\n When these three settings are mixed, it can lead to the calculated price having more decimal precision than allowed to be displayed by the store, causing prices to be rounded in unexpected ways. <\/p>\n\n\n\n If any of these three tax display settings in the series differ, a warning banner is displayed to notify the user that tax display settings are mismatched and in conflict.<\/p>\n\n\n\n Clicking on Use recommended settings<\/strong> updates all of these settings to be the same as the one set for Prices entered with tax<\/em><\/strong>.<\/p>\n\n\n\n Default standard rates<\/strong> are sufficient for most cases, but if you sell goods that require different tax classes, you can add them here. Add one tax class per line. Remove or add additional classes as required, but note that the Standard rates<\/em><\/strong> class cannot be removed.<\/p>\n\n\n\n After clicking Save changes<\/strong>, your added tax classes will appear as sub navigation links near the top of the page. From there, you can click on each to add and manage the tax rates within that class.<\/p>\n\n\n\n The Display prices in shop <\/em><\/strong>setting determines how prices are displayed throughout your store\/catalog. Choose Including tax <\/strong>or Excluding tax<\/strong> from the dropdown menu.<\/p>\n\n\n\n Refer to the rounding section<\/a> of this documentation for how this setting might be affected by other settings.<\/p>\n\n\n\n The Display prices during cart and checkout<\/em><\/strong> setting will determine how prices are displayed in your cart and during checkout. Choose Including tax <\/strong>or Excluding tax<\/strong> from the dropdown menu.<\/p>\n\n\n\n Note:<\/strong><\/p> The address field needs to be completed in order to get tax calculations if you have a tax table that distinguishes between locations.<\/p><\/div>\n\n\n\n Refer to the rounding section<\/a> of this documentation for how this setting might be impacted by other settings.<\/p>\n\n\n\n The Price display suffix<\/em><\/strong> setting allows you to add any text after product prices and, optionally, show how much tax is included or prices without tax.<\/p>\n\n\n\n You can use the following dynamic placeholders and add text around them:<\/p>\n\n\n\n For example, using Price suffixes are not shown by default when first viewing a variable product. They do, however, appear once a variation has been selected. <\/p>\n\n\n\n The Display tax total<\/em><\/strong> setting determines if multiple taxes are displayed as one total during checkout or if they\u2019re displayed as an itemized list of taxes.<\/p>\n\n\n\n This setting, when set to Itemized<\/strong>, can also be useful for displaying the tax rate name on cart and checkout pages<\/strong>, especially when only one tax rate per location is used. The name needs to be updated according to the location. In the image below is an example tax rate to illustrate. Note how the tax name is set to Sales Tax<\/strong>.<\/p>\n\n\n\n The tax rate appears as the English default Taxes<\/em><\/strong> when Display tax totals<\/em><\/strong> is set to As a single total<\/strong>.<\/p>\n\n\n\n However, the tax rate appears by the name given in the tax rate setup, Sales Tax<\/em><\/strong>, when we change the Display tax totals<\/em> <\/strong>to Itemized.<\/strong><\/p>\n\n\n\n Create a custom translation<\/a> instead to change the default text (Taxes<\/em><\/strong> in English) without using the above setting.<\/p>\n\n\n\n If your settings are grayed out, you may notice an extra Automated taxes<\/em><\/strong> setting, which is set to Enable automated tax.<\/strong> If that is the case, most of this document won’t apply, as your taxes are automatically managed by our WooCommerce Tax<\/a> extension.<\/p>\n\n\n\n To make this document more relevant, change the Automated taxes<\/em><\/strong> setting to Disable automated taxes <\/strong>and click Save changes<\/strong> to return the normal functionality of core WooCommerce tax settings.<\/p>\n\n\n\n The Automated taxes<\/em><\/strong> setting <\/strong>is added by an additional extension, in this case WooCommerce Tax. Refer to the WooCommerce Tax documentation<\/a> for information on this works.<\/p>\n\n\n\n Tax classes<\/strong> are displayed as subtabs at the top of the Tax settings<\/em><\/strong> screen. Click on a tax class to view its tax rates table which is where you define the tax rates to apply to your customers.<\/p>\n\n\n\n Each tax rate row has the following attributes:<\/p>\n\n\n\n For how-to guides for configuring specific tax setups, see how to configure specific tax setups in WooCommerce<\/a>.<\/p>\n\n\n\n Tax rates can be entered manually by following the steps below:<\/p>\n\n\n\n Tax rates can also be exported to or imported from comma-separated value (CSV) files. Below is an example of a tax rate table in WooCommerce > Settings > Tax > Standard rates<\/em>, with the Import CSV<\/strong> and Export CSV<\/strong> buttons visible:<\/p>\n\n\n\n To create a tax rate CSV file from which to import rates, we suggest manually entering a rule first, and then doing a CSV export. It will generate a tax rule CSV file that contains the 10 columns that need to be present for a tax rate import to work, serving as a template for changes or additions.<\/p>\n\n\n\n The columns are:<\/p>\n\n\n\n We\u2019ve provided a sample tax rate CSV below that you can download and import for the United States based on state tax only<\/strong>. Leave Tax class<\/em><\/strong> blank for standard rates.<\/p>\n\n\n\n Download a sample tax rate CSV<\/a>.<\/p>\n\n\n\n This sample tax rate CSV should not<\/strong> be used for production\/live purposes, as tax rates frequently change. Double-check any rate for accuracy before using.<\/p><\/div>\n\n\n\n Incorrect rates should be deleted by following the steps below: <\/p>\n\n\n\n To delete all tax rates at once (maybe because you have an extensive list to redo, or perhaps you just want to start fresh) go to WooCommerce > Status > Tools > Delete WooCommerce Tax Rates<\/em> and click the Delete tax rates<\/strong> button. <\/p>\n\n\n\nRelated guides for additional reference: <\/h3>\n\n\n\n
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How to enable taxes in WooCommerce<\/h2>\n\n\n\n
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![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/wp-admin-woocommerce-enable-taxes@2x.png?strip=all&w=704\")
<\/a><\/figure>\n\n\n\nHow to configure tax options in WooCommerce<\/h2>\n\n\n\n
![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/wp-admin-woocommerce-tax-settings@2x.png?strip=all&w=704\")
<\/a><\/figure>\n\n\n\nPrices entered with tax<\/h3>\n\n\n\n
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Calculate tax based on<\/h3>\n\n\n\n
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Shipping tax class<\/h3>\n\n\n\n
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Rounding<\/h3>\n\n\n\n
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![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/wp-admin-woocommerce-alert-inconsistent-tax-settings@2x.png?w=980\")
<\/a><\/figure>\n\n\n\nAdditional tax classes<\/h3>\n\n\n\n
Display prices in the shop<\/h3>\n\n\n\n
Display prices during cart and checkout<\/h3>\n\n\n\n
Price display suffix<\/h3>\n\n\n\n
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{price_including_tax}<\/code><\/li>\n\n\n\n{price_excluding_tax}<\/code><\/li>\n<\/ul>\n\n\n\nPrice incl. tax: {price_including_tax<\/code>} in this field will display as \u201cPrice incl. tax: $59.74<\/strong>\u201din your store. This is a way to add the tax-inclusive price in small print to a store where the prices are configured to exclude tax, or vice versa.<\/p>\n\n\n\n![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/price-display-suffix-in-woocommerce.png?strip=all&w=704\")
<\/a><\/figure>\n\n\n\nSuffixes on variable products<\/h4>\n\n\n\n
![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/price-display-suffix-on-a-variable-product-in-woocommerce.png?w=980\")
<\/a><\/figure>\n\n\n\nDisplay tax totals<\/h3>\n\n\n\n
![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/setting-a-tax-rate-name-woocommerce-tax-settings.png?w=980\")
<\/a><\/figure>\n\n\n\n![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/default-tax-rate-name-woocommerce-tax-settings.png?strip=all&w=704\")
![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/display-tax-rate-name-woocommerce-tax-settings.png?strip=all&w=704\")
<\/div><\/figure>\n\n\n\nWhy are tax options grayed out?<\/h3>\n\n\n\n
![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/woocommerce-tax-automated-tax-rates.png?w=980\")
<\/a><\/figure>\n\n\n\nConfiguring tax rates in WooCommerce<\/h2>\n\n\n\n
Tax rate table settings in tax classes<\/h3>\n\n\n\n
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*<\/code>) to apply to all countries. All country abbreviations are visible in the WooCommerce code on GitHub<\/a>. \u00a0<\/li>\n\n\n\n*<\/code> to apply to all states. All state\/province abbreviations are visible in the WooCommerce code on GitHub<\/a>.<\/li>\n\n\n\n;<\/code>, use the wildcard *<\/code> to match all postcodes, prefix letters or numbers to the wildcard * to apply to only certain postcodes (e.g. PE*<\/code> would match all postcodes starting with PE, or 90210*<\/code> would work in the US for ZIP + 4 postcodes), and use numeric ranges to include everything between a start and end (e.g. 2000\u20263000).\u00a0<\/li>\n\n\n\n*<\/code> to apply to all cities. If a city is specified, the customer would have to enter it exactly for a match. For example, a rule for \u201cCape Town\u201d will not match if a customer enters \u201cCapetown\u201d.\u00a0<\/li>\n\n\n\nConfiguring specific tax setups<\/h3>\n\n\n\n
Manually inserting tax rates<\/h3>\n\n\n\n
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Importing and exporting rates<\/h3>\n\n\n\n
![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/wp-admin-woocommerce-tax-rates-import-export@2x.png?w=980\")
<\/a><\/figure>\n\n\n\n\n
Deleting tax rates<\/h3>\n\n\n\n
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![\"\"](\"https:\/\/round-lake.dustinice.workers.dev:443\/https\/woocommerce.com\/wp-content\/uploads\/2013\/02\/removing-a-tax-rate-woocommerce-tax-settings.png?strip=all&w=704\")
<\/a><\/figure>\n\n\n\n