Configure > Taxes

Tax Codes

A tax code in AbleCommerce is a merchant's custom setting that is used to trigger whether a product is subject to taxation. When a product is "taxable" by use of the tax code, AbleCommerce calculates taxes according to the tax rules that were assigned to the tax code. The tax rules you create will tell AbleCommerce what rate to apply and to what location. A tax code can be associated to products, shipping charges, or gift wrap. Any taxable item in the order will be flagged for having a potential tax calculation applied. Each tax rule is based on location so taxes cannot be determined until the customer enters an address for the order.

After the customer's address is known, any applicable taxes are calculated. If any adjustments are made to the order, such as a coupon or discount, taxes are recalculated on the discounted price.

In most situations, a merchant only needs a single tax code. When the tax code is applied to the product, the product becomes eligible for taxation according to the tax rules. Tax codes are not configurable. They merely classify, or group, the tax rules that are assigned to them.

If you sell items that have different tax rates, then you will need to create tax codes for each type of product. For example, merchants that sell wine might need to charge a different tax rate for the wine then for the other non-alcoholic items they sell.

Add a Tax Code

The tax code must have at least one tax rule and be assigned to a product.

From the Configure Taxes page, click the Tax Codes link, or go to Configure > Taxes > Tax Codes using the top menu.
On the Tax Codes page, you will see a list of all defined tax codes in the left section. By default, there is one tax code called 'Taxable'.
The Add Tax Code form is in the right section.
To add a new tax code, enter a name into the Name field, click the ADD button.
No configuration is necessary, the new tax code appears in the left section.

You can click on the linked number in the Products column to view all the products assigned to this tax code.
You can click on the linked number in the Tax Rules column to view the tax rules assigned to this tax code.

Moving Products to a different Tax Code

You can assign products a tax code from the product editing pages, or move them from the taxes page.

From the Tax Codes page, click on the linked number of products for the tax code you want to move products from.
This will display a list of all the products assigned to this tax code.

Each product has a link to the Edit Product page.
From the first page, select one or more products by checking the box for each. You can check the box in the upper-right corner to select all products on the page.
In the lower-right corner, select a tax code from the Change Selected to option list.
Click the GO button. Selected products on this page are re-assigned to the new tax code.
If you have multiple pages, you will need to repeat this process for each page in the product listing.

Edit or Delete a Tax Code

From the Tax Codes page, you can use the EDIT icon to change the name of the tax code.
You can click the DELETE icon to remove the tax code and it's association to all products.

Adding or Changing a Product's Tax Code

From the Catalog menu, go to the Edit Product page for a taxable product.
When you add or edit a product, you can select the Tax Code from the TAXES & SHIPPING section.

If a tax code is selected, the product becomes taxable according to the tax rule(s).

Adding or Changing a Shipping Method's Tax Code

From the Configure > Shipping > Methods menu, edit a taxable shipping method.
When you add or edit a shipping method, you can select the Tax Code.

If you make a shipping method taxable, the amount calculated for the selected shipping rate is taxed according to the tax rule(s).
The additional tax on the shipping charge is combined with any other taxes for the order.

Adding or Changing a Gift Wrap's Tax Code

From the Catalog > Gift Wrap menu, edit a gift wrap style.
When you add or edit a gift wrap choice, you can select the Tax Code.

If you make the gift wrap taxable, the amount calculated for the selected gift wrap is taxed according to the tax rule(s).
The additional tax on the gift wrap is combined with any other taxes for the order.