03/18/2015 08:11 PM Taxes
Virto Commerce

Taxes

Updated:

Introduction

Store administrators need to configure taxes for jurisdictions that have the right to impose a tax on taxpayers.

To configure a tax system for their store, administrators can use the following:

  • Tax Categories: Tax Categories determine the taxes that are applicable for an item or shipping method in each Tax Jurisdiction Group. Each item should be assigned to one of the Tax categories.
  • Tax Jurisdictions: Tax Jurisdictions are hierarchical, so it is possible to have different Tax Categories applied at various levels.
  • Tax Jurisdiction groups: Tax Jurisdiction groups combine Tax Jurisdictions.
  • Tax Values: The tax rate applied to a Tax Category in a particular jurisdiction group.

There is an address properties hierarchy in Jurisdictions. Here is how they checked by priority from low to high:

  • Country
  • State/Province
  • County
  • District
  • City
  • Zip/Postal code
  • Geo code

So the tax jurisdiction with the higher priority match will be applied to the order.

Taxes and Order Refunds

If the customer returns the entire order, the system refunds all the taxes paid. If they are returning only a portion of the order, the Commerce Manager returns only a portion of the taxes. This is determined by looking at the total item taxes paid on the line item they are returning and then multiplying those taxes by the portion they are returning.

By default, shipping costs and taxes are not refunded.

Tax Categories

Creating a Tax Category

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Taxes child tab.
  4. Click Add button.
  5. In the first and the only step of the wizard enter self-explanatory Name of the Tax Category.
  6. Click Finish.

The Category will be displayed in the list of Tax Categories.

Editing Tax Category

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Taxes child tab.
  4. Double click the selected Category.
  5. Edit Name of the Category.
  6. Save changes.

Deleting Tax Category

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Taxes child tab.
  4. Click the Tax Category you want to delete.
  5. Click DELETE button
  6. Confirm deletion.

Tax Jurisdictions

Creating a Tax Jurisdiction

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Jurisdictions child tab.
  4. Click Add button.
  5. In the first and the only step of the wizard setup Jurisdictions properties by your needs.
Property Description
Code Unique code of the Jurisdiction
Name Name of the Jurisdiction
Jurisdiction Type The type of the Jurisdiction. If the Jurisdiction group is applicable to Taxes and Shipping methods - select All, otherwise - select appropriate
Country Required field. Setup the target country for the Jurisdiction
State, Region State, province code/name (E.g. For California state enter CA code)
County County name. Set it if the Jurisdiction is limited to specific County
District District name. Set it if the Jurisdiction is limited to specific District
City City name. Set it if the Jurisdiction is limited to specific City
Zip Code Start Zip Code range start. Set it if the Jurisdiction is limited to specific zip codes range
Zip Code End Zip Code range end. Set it if the Jurisdiction is limited to specific zip codes range
Geo Code Unique Geo Code. Set it if the Jurisdiction is limited to the specific Unique Geo Code

6. Click Finish.

The created Jurisdiction will be displayed in the list.

Editing Jurisdiction

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Jurisdictions child tab.
  4. Double click the selected Jurisdiction.
  5. Edit required fields.
  6. Save changes.

Jurisdiction type can't be edited.

Deleting Jurisdiction

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Jurisdictions child tab.
  4. Click the Jurisdiction you want to delete.
  5. Click DELETE button
  6. Confirm deletion.

Tax Jurisdiction Groups

Creating a Tax Jurisdiction Group

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Jurisdiction groups child tab.
  4. Click Add button.
  5. In the first and the only step of the wizard setup Jurisdiction group properties
Property Description
Code Unique code of the Jurisdiction Group
Name Name of the Jurisdiction Group
Jurisdiction type The type of the Jurisdiction Group. If the Jurisdiction group is applicable to Taxes and Shipping methods - select All, otherwise - select appropriate
Chosen Jurisdictions Jurisdictions that this group should aggregate

6. Click Finish.

The created Jurisdiction group will be displayed in the list.

Editing Jurisdiction group

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Jurisdiction groups child tab.
  4. Double click the selected Jurisdiction group.
  5. Edit required fields.
  6. Save changes.

Jurisdiction group type can't be edited.

Deleting Jurisdiction group

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Jurisdiction groups tab.
  4. Click the Jurisdiction group you want to delete.
  5. Click DELETE button
  6. Confirm deletion.

Tax

Creating a Tax

  1. Open Settings module.
  2. Open Taxes tab.
  3. Open Taxes child tab.
  4. Click Add button.
  5. In the first step of the wizard setup the Tax properties
Property Description
Name Make the name of the tax to be self-explanatory the best practice is to use the name of the real tax
Tax type Select if the tax is applied to Items of the order or to a Shipping
Sort Order The order the tax will be displayed in the frontend

6. Click Next. 7. In the second step of the wizard setup the display names for the Tax for available languages if any.

  • Click Add button above the list of display names
  • In the popup dialog select the target language and enter the Display name value
  • Click OK The created display name will be displayed in the list.
  1. Click Finish. The created Tax will be displayed in the list.  Open it to setup Tax values for different Tax categories and Jurisdiction groups.
  2. Open Tax (see Editing Tax section of this guide page to open tax).
  3. Open Tax values tab.
  4. Click Add button.
  5. In the popup dialog setup properties

|Property|Description| |Tax Category|Select target tax category in the list of available| |Jurisdiction Group|Select target Jurisdiction Group in the list of available| |Percentage|Enter tax value| |Effective Date|Enter the date from which the tax is effective. If no date entered the tax will be applied immediately|

13. Click OK. Reapeat the steps 9-13 for all target Tax Categories and Jurisdiction Groups. 14. Click Save in the Tax edit view to save changes.

Editing Tax

  1. Open Settings module.
  2. Open Taxes tab.
  3. Select Taxes child tab.
  4. Double click the selected Tax.
  5. Edit required fields.
  6. Save changes.

Deleting Tax

  1. Open Settings module.
  2. Open Taxes tab.
  3. Select Taxes child tab.
  4. Click the Tax you want to delete.
  5. Click DELETE button
  6. Confirm deletion.

After Taxes has been configured assign catalog items to specific Tax Category, so only taxes that should be applied to the item would be calculated in the order.