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.

Assigning Products to a Tax Code

You can assign individual products a tax code from the product editing pages, or assign them in bulk from the taxes page here.

To assign products to the Tax Code, click on the linked number counter in the Products column.
This will bring you to a search form that looks similar to the one shown below.

By default, you will see any Assigned Products that are currently associated to the Tax Code.

Using the detailed search form provided, you will be able to easily find more products that can be assigned to this Tax Code.
Type in some search criteria, or select a filter, then click the SEARCH button.
In the results section below, you can check the top box in the first column to select all product results, or select individual items as needed.
To associate product(s) to the Tax Code, simply click the green PLUS icon in the Link column.
Or you may select one or more products using the checkbox, and then use the batch options to Assign or Remove Selected products to/from the Tax Code.
You can remove the association by clicking the red delete icon.
When finished assigning products, click the CANCEL button to return to the Tax Codes page

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 Shipping, Tax, and Inventory 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 Shipping 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.
A Handling Fee can also be taxed, but it must have the Show separately option selected.
Select the same or a different Handling Tax Code.

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.