Knowledgebase

Can I Charge A Different Tax Per Product?

 

Absolutely!

In some instances a particular region will require you charge a different tax rate depending on the type of product you're selling. For example clothes may have a 6% sales tax, but all other types of products may have a 7% sales tax. Shift4Shop will accommodate for the sales tax difference with the Tax Code feature.


Setup the Tax Rates

The first step is to setup the different tax percentages you will need to offer for the region. This is done in the Settings >Payment area (Click "Setup Tax" under the Tax Manager section).

Set the Tax Codes

After you have setup your different tax rates, you can set your Tax codes.

  1. Using the left hand navigation, go to Settings >Payment and click on the "Setup Tax" button located under Tax Manager
  2. Type the Tax Codes for each tax rate you have setup in the Tax Code field. For example, if you have set one tax rate for 6% for clothing and a second tax rate for 7% for all other products, you could type ABC in the tax code field for the 6% tax bracket and DEF in the tax code field for the 7% bracket.

Now you will assign the different tax codes to your products

  1. Using the left hand navigation, Go to Products and select or search for the product you want to edit.
  2. Click on the product name or go to the far right and select its "Action >Edit" button.
  3. Next, click on the Advanced Tab for the product and look under "Price and Quantity Options" on the right hand side
  4. In the Tax Code field enter the corresponding tax code for the correct tax rate. For example, if the item is clothing, enter ABC. If the item is not clothing, enter DEF.
  5. Click Save (at the top right).
  6. Repeat this process for all products as needed.

As with setting up your Tax rates, please refer to your particular region's taxing laws to determine what rates will be necessary.

Important
Please note that the Tax Code field only supports up to 35 characters at once. It will not allow a code longer than this. So please plan accordingly.


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