Taxes and Charges¶
Taxes and Charges application group is located in the Administration module. These applications allow you to define taxes that will be used for Products which you sell on your online store. Taxes are dependent on Zones. For every Zone you should define all taxes that are active/used here and have connections to Products you intend to sell. Here you can also specify taxes according to customers or products - you can tax certain products and customers at different tax rates.
Tax Rule is a complete definition of tax that will be used on your store. It defines the rate (from Zone Taxes application), customer specification (from Customer Tax Categories), type of product (from Product Tax Categories application) and a branch which will use this setting (a branch must be previously created in the Administration module).
Tax Rules are not directly selected anywhere, they are used for tax rate definition for particular customers and product categories and are connected to a branch that is responsible for order dispatch.
Note
Products are inserted in particular Product Tax Categories in the Pricelist along with the product price.
To create a new Tax Rule you need to define Zone Taxes, Customer Tax Categories, Product Tax Categories and a Branch (or Branches) first.
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When defining a price for a product (or delivery and payment method) you can include or exclude taxes in the product price (the Gross Price setting). If you insert the price without the tax included, the final price (with the tax) will be calculated automatically according to the rate connected to a Product Tax Category in which the particular product (or delivery and payment method) is inserted.
Zone Taxes¶
One Zone Tax is one tax used in one Zone. It defines the tax that will be used for taxing items you offer in your online store. Zone Tax are not connected directly to items you sell, they are linked with Tax Rules, which define the final tax (according to a customer and item).
Original Rate defines the percentage used to count the Gross Price. This is used in case you are pricing your products and services directly with the tax included - this is a common strategy in product pricing, because thanks to this your prices have a more attractive appearance.
This Original Rate is used to count the price without tax included - it is used, for example, on the invoice and for other accounting purposes. In case you want to sell only to individuals (non-tax payers), this is the only tax rate field you should fill in. The Rate in % is used in case that the final price counted for a particular Customer Tax Categories (probably for a legal entity or firm is different from the Original Rate).
Customer Tax Categories¶
Customer Tax Categories are intended to distinguish particular groups of customers which pay different tax rates. VAT payers and non-payers are typical examples of the usage of a Customer Tax Category. In this application you define only the name of the group and VAT Payer setting (YES/NO). The particular tax rate is assigned in the Tax Rules application.
You are not selecting and adding customers to these categories manually. The customer self selects the category he/she belongs to during the checkout process.
Customer Tax Category is important for the final price calculation, because you use one pricelist for all Customer Tax Categories (you are not able to define special pricelists for every Customer Tax Category). To calculate the final price correctly you have to set up the Rate in % field, which is a part of Zone Tax settings.
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A Particular Customer Tax Category is subsequently selected by the customer itself during the checkout process and the prices are recalculated accordingly.
Selling to more Customer Tax Categories¶
BizBox allows you to sell to more Customer Tax Categories - for customers who pay different taxes for the same products. Typically you will sell your products to customers who pay normal value added tax and to persons who pay a different tax - this can typically be legal entities and companies. The thing is, that you have only one pricelist which prices are probably defined with the valued added tax included, because you are primarily selling to individuals (non-VAT payers). In case you want to sell for both individuals and legal entities/companies (VAT payers), you have to distinguish the tax calculation. This is done thanks to Zone Taxes - here you define the Original Price Rate in % - it is the price used to calculate the gross price in the pricelist. The number in this field should be the same for Zone Taxes with the same Zone defined. The “Rate in %” defines the particular tax rate that will be paid by the Customer Tax Category. To make this work, you have to connect the Zone Tax to the Customer Tax Category in the Tax Rules application. Here, you can add a new one and connect the Zone Tax, Customer Tax Category, Product Tax Category and Branch which is responsible for order dispatch.
Remember that you have to connect these customer categories to a Tax Rule which defines how the tax will be applied. Otherwise your customers will not be able to select and use it.
It is also necessary to change the checkout process - because if you are using more than one Customer Tax Category, the customer will have to select his/her own. This has to be done in the checkout form - together with the addition of the customer details.
Product Tax Categories¶
Product Tax Categories are grouping together Products which are grouped on the basis of a same taxation. You can sell various Products with different taxation on your online store (according to the laws of particular country/region (= zone) in which you sell). Product Tax Category defines which taxation rule will be used for Products from this Category (this definition is set in the Tax Rules application).
In this application you are only defining the particular categories. Products are added into it in the Pricing module along with the price.
You can also mark one of the existing product tax categories as a default. The default category will be automatically selected if a new price is defined. This feature is available in pricelists, pricelist editor, orders and branch settings). Only one product tax category can be market as a default.
Tax Rules¶
Tax Rules are created in the Administration module in the Tax Rules application. Tax Rules are used to define a tax that will be applied to a particular products, services (Payment, Delivery or Handling Methods and Packing Boxes) or customer depending on the Zone and Branch.
On the first General tab, enter the name, abbreviation (used on the invoice and other documents), whether it is the default for the selected zone and whether zero tax (used for VAT payers) should be used. Next, select the :ref:`Zones<lab-countries>` for which the rule will apply, the pre-created tax Customer Tax Category and Branch or multiple Branches.
On the second Product Tax Category Rates you need to link a particular Product Tax Category to a Tax Rate. This defines which tax should be applied to a specific product tax category.