Introduction

Tax Classes are required to group Tax Zones and Tax Rates together, and to allow products to be assigned a Tax Class which would inherit the Tax Zone and Tax Rate relationships. All matching tax rates are either added or compounded together depending on the Tax Class definition.

Tax Classes

Figure 1 shows the Tax Classes listing page under the admin>Definitions>Tax Classes section.

Figure 1 Tax Classes listing page

• Add/Edit tax classes
  Products and services are assigned one Tax Class. Tax Classes can contain any number of Tax Rates which are to be applied to the price involved. The title of the Tax Class is shown on the Order Confirmation page and lists the calculated tax rate value.
  You may either add a new tax class to apply relatively unified tax rate to specific products, or change the details of the existing class.
  Note: Total Tax Rate in the left box actually refers to total tax rate entries shown in the right box.
• Hide/Display a column
• Add/Edit zones
  Figure 2 shows the New Tax Rate listing page under the admin>Definitions>Tax Classes>zone add section.

Figure 2 New Tax Rate listing page

1. Select a zone group in the combo box.
2. Define the tax rate for the selected zone group.
   Tax rate calculations are based on the priority of multiple tax rates defined in the tax class. Multiple tax rates defined with the same priority values are added to form a final tax rate percentage value, and multiple tax rates with different priority values are compounded together in priority order to form a final tax rate percentage value.
3. Give a proper description for the tax rate in the zone group.
4. Define the priority for the tax rate.
   Priority plays an important role in a tax class as it states how the multiple tax rates in the same class are to be treated; either adding each rate together when the priorities are the same, or compounding the rates together in the defined priority order.
   Priorities are needed when multiple tax rates in a Tax Class exist where residents of a country may need to pay a national sales tax rate, with residents of a particular state also needing to pay a local tax rate in addition to the national sales tax rate.
5. Select "Save" to implement the action.
   To change the details of the existing class, click the "edit graphic tool" in its line.

• Refresh the present page
• Delete tax classes or zones

Unfamiliar with operations, or functions of a button? See Common Button Operations.