Taxation rules differ depending on the location. Irrespective of location, it is a prime concern for eCommerce businesses, as the tax rates vary with a lot of factors – the type of products, your business location, consumers’ address, and more. The complexities faced is much more than the need to collect taxes and then periodically forward the collected tax amounts to appropriate tax authorities. This article clearly explains how you can effortlessly traverse this labyrinth with Zenbasket.
Once you have fully grasped your local tax laws, you need to start configuring your online store to comply with them. In ZenBasket, tax configuration is dynamic and can be easily set as per your requirement.
There are two ways to set up taxes in ZenBasket:
1. Automatic taxes –They are available for merchants in the USA, the EU, Canada, Australia, and New Zealand. This provides an updated standard rate across the online e-commerce store and can be enabled in one button click..
2. Manual taxes – If automatic taxes are not applicable for your country or to sell products that have tax policies too complex for automatic taxation, you can configure taxes manually in ZenBasket. Manual configuration can be set to specify tax rates for different regions, zones and countries.
Setting Up Manual Taxes In ZenBasket
1)Setting Manual Tax as your Store’s Tax Method – From ZenBasket admin Settings, click on Configuration. Under Configuration Settings, from the ‘Select Your Tax Method’ dropdown list, choose the ‘Manual’ tax option.
2) Customizing Manual Tax for your Store – From Settings > Taxes you can view the taxes setup for your store. For creating new taxes or editing existing taxes, click Manage Tax Rates.
3) For adding a new tax, use the “Add New Tax” button, available on clicking Manage Tax Rates. Set a tax name. To apply the current tax to all products, tick the ‘Apply this tax to all products’ option.
4) To fix on what total the tax rate is applied, choose any of the options from the dropdown list:
Apply tax to Subtotal
Apply tax to Subtotal + Shipping
5) To include tax in product prices, select the ‘Include tax in product prices’ option. When enabled, the customer will see the product’s price added with the tax amount.
6) By default, the rate gets applied to all destinations. To create tax rates zone wise, you can click Add Rates. After clicking on Add Rates, from the dropdown list, select a zone and enter the applicable tax rate. To create or edit existing zones, click ‘Manage Zones’ and you will be redirected to Zone Management.
7) Similarly rates can be specified for the different zones of your target audience. When a customer enters an address within a zone at checkout, then the different taxes applicable to that zone and the corresponding tax rates are displayed and used for calculating the cost to the customer.
8) Click on the ‘Save’ button to create the tax plan. Mapping products with tax could take some time based on your shop size and then the new tax method will be enabled for the store. The created tax rate is displayed on the Taxes page.
9) Furthermore, you can create a specific tax rate for a product by using the Shipping & Tax tab from the particular product’s page. By default, all created taxes with the ‘Enabled by default for all products’ option turned on will be displayed in the Shipping & Tax tab for all products. This can be overridden at a product level by using Enable/Disable the tax rates in Shipping & Tax tab. By clicking ‘Tax Settings’, you will be redirected to the Taxes page in ZenBasket.
10) Zenbasket provides an extensive location wise tax report for a chosen time range. You can export the tax report as a CSV file.
ZenBasket is an all-in-one product workflow solution for eCommerce sellers. Taxes have never been more simple. Stop wasting time on your taxes and Start growing your business smartly, with our advanced tax features for E-commerce platforms.
Let ZenBasket take your business to the next level.