Tax Display

[cozyhom]

>>>Display Prices with Tax
>>>Display prices with tax included (true) or add the tax at the end

In the "display prices with tax included" does that included shipping? And does it show the price separately from the tax or the price and the tax together? Also, in "add the tax at athe end" does that mean each item taxed separately or all of the items added and then add the tax. Do you tax shipping with tax or not?

[Kim]

. Do you tax shipping with tax or not?

That depends on local laws. Have you asked your tax man?

[cozyhom]

This has got nothing to do with tax laws.

It has to do with configuration of "my store" in ZenCart

[DrByte]

As far as Zen Cart is concerned, if you set "Display prices with tax" = true, then all your prices should display with tax included.


Whether *you* should tax your shipping or not is not something Zen Cart can tell you -- that's what Kim meant when she said you should talk to a tax accountant familiar with your business situation.

[cozyhom]

Okay then one question was answered but this is the format that I am in question about as far as shipping goes>>

$20.00+
$10.00
##########___
$30.00+
$10.00 shipping
##########___
$40.00+
$5.00 tax
$45.00 total

or this:
##################################################################################################################################_
$20.00
$10.00
##########_
$30.00+
$3.00 tax
##########___
$33.00+
$10.00 shipping
##########___
$43.00 total

I guess I'm asking the wrong way. I will charge shipping but I don't want shipping taxed (second format)

[dbltoe]

In almost every shipping module, there is the option of Tax Class. If you do not need to charge tax on shipping go to the shipping module(s) you are using and set the Tax Class to none.

That's done in the admin under Modules -->Shipping Modules.

Right below the Tax Class in the most of the Shipping Modules is a selection box labeled "Tax Basis". Again, as Kim and DrByte have pointed out, you need to find out exactly what the tax laws are for your area. Here in Texas, I don't have to charge tax on shipping. I also don't charge any tax if the item is being shipped to anywhere outside Texas. However, an item being shipped to a Texas address has to be taxed. That means my settings would be Tax Class -- none and Tax Basis -- Shipping.

Lastly, you would use Shipping Zone if you want to apply the shipping to (for instance) ONLY California. Then you would enter California in the zone and make your settings match those required for California.

If you want the shipping rules to apply to everywhere you ship, you would leave the Shipping Zone at none.

I know this seems like a lot but, all three items (Tax Class, Tax Basis, and Shipping Zone) need to be correct. The savvy customer will tell everyone but you that they got charged when they should not have been. Not good for business.

[cozyhom]

Thanks dbltoe!

Boy, you sure did help me out a lot with your reply. I'm still slowly setting up my site. I'm working towards the shipping module. I just don't want to make a mistake if I can help it. I am learning a lot on this site. I had a site in FrontPage but then all I had to do was click a button and ua..la..la!! Now, I have to understand what was behind that button.

[dbltoe]

You are welcome.

Word of caution -- stay AWAY from FrontPage when working with these files. You will be tempted to open a file and work with it because you are familiar with how FP works. FP will do some serious munging with your files.