tax

Compound Taxes

For compound taxes, the total cost of a product or service is taxed at one rate, and then the total of that amount, including the first tax amount, is taxed a second time. Compound tax is also known as stacked tax. Compound taxes use different tax rule priorities. If two tax rules with the same priority apply then the taxes …

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Step 4: Apply the FPT to Products

1. On the Admin menu, select Catalog > Manage Products. 2. Find the product that needs the FPT and open it in edit mode. 3. In the product information, find the FPT field that you added to the attribute set. Then, do the following: 4. Click the Add Tax button. Then, do the following: a. Select the Country/State where the …

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Step 3: Add the FPT Attribute to an Attribute Set

1. On the Admin menu, select Catalog > Attributes > Manage Attribute Sets. 2. Open the attribute set that needs the FPT attribute. 3. Drag the FPT attribute from the list of Unassigned Attributes on the right to the Groups list. The group folders correspond to sections in the Product Information panel. You can place the attribute wherever you want …

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Step 2: Create an FPT Attribute

1. On the Admin menu, select Catalog > Attributes > Manage Attributes. 2. In the upper-right corner, click the Add New Attribute button. Then, do the following: a. In the Attribute Code field, specify a unique identifier for this attribute. Do not use spaces or special characters. However, you can use hyphens or underscores. The maximum length is 30 characters. …

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Fixed Product Tax Setup

The following instructions show how to set up a fixed product tax for your store. An “eco tax” is an example of how you might use FPT. After setting the scope for the tax and the countries and states where the tax applies, and depending on the options you choose, the input fields can change to accommodate the local requirements. …

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Fixed Product Tax

Some tax jurisdictions have a fixed tax that must be added to certain types of products. You can set up a fixed product tax (FPT) for your store’s tax calculations. For example, in some countries FPT can be used to set up a Waste Electrical and Electronic Equipment Directive (WEEE) tax, also known as “ecological tax” or “eco tax,” that …

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Cross-Border Price Consistency

Cross-border trade (also referred to as price consistency) supports European Union (EU) and other merchants who want to maintain consistent prices for customers whose tax rates are different than the store tax rate. Merchants operating across regions and geographies can show their customers a single price. Pricing is clean and uncluttered regardless of tax structures and rates that vary from …

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EU Place of Supply

European Union (EU) merchants must report their digital goods sold by quarter to each member country. Digital goods are taxed based on the customer’s billing address. The law requires merchants to run a tax report and identify the relevant tax amounts for digital goods, as opposed to physical goods. Merchants must report all digital goods sold by EU member countries …

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Tax Rules

Tax rules put all the taxation elements together: product tax classes, customer tax classes, and tax zones and rates. Each tax rule consists of a customer tax class, a product tax class, and a tax rate. When numerous taxes must be defined, you can simplify the process by importing them from a spreadsheet. Select Sales > Tax > Import/Export Tax …

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Step 3: Import the Tax Rates

1. On the Admin menu, select Sales > Tax > Import / Export Tax Rates. 2. Click the Browse button, and select the .CSV tax rate file that you prepared to import. Then, click the Import Tax Rates button. It might take several minutes to import the data. When the process is complete, the message, “The tax rate has been imported” …