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FAQ

What if some of my products are not taxable?

Automatic tax rates apply to all products by default. In case you do not charge tax for some of your products, or you need multiple taxes, you will need to use manual tax setup.

Tax isn’t calculated if I use PayPal Express Checkout. Why?

Most likely your “Zone defines by” tax option is set to “Billing address”. PayPal does not return the customer’s billing state code, only the country code. That is why your store cannot calculate the tax if it’s based on the billing address. Please change the “Zone defines by” option to “Shipping address”, it will fix the issue.

How to add tax percentage to invoice?

If you want to add tax percentage to your invoices, you can add it to the name of your tax here: store admin > Settings > Taxes page. For example, if you have a 15% tax, in your invoices it may look like this: 15% Tax: R100. A new tax name will be applied only to orders placed after editing.

How to set up a tax rate for a certain state or city?

The tax calculation algorithm determines which tax to apply by looking through the configured tax rate list, top-down. When it finds a matching zone, it stops and applies the corresponding tax rate. So you can define tax rate for a particular state(s) or cities (using zip codes), then add a rate for “USA” at the bottom of the list. In this case, the USA rate will be applied to all states except the states configured explicitly.

A customer marked as tax-exempt still see taxes at checkout. Why?

In order to get a 0% tax rate, non-taxable buyers have to sign in at checkout before placing an order. Otherwise, the standard taxation rules configured in the store will be applied. Such customers should be advised to log in before purchase using the correct email. You as the store owner can check this email in your store admin > My Sales > Customers.