Sales tax settings in WooCommerce
As part of your website development, you have likely already set your tax preferences for web sales. Tax collection and remittance is an unavoidable part of running a business. Some retailers prefer to add any relevant sales tax at checkout, while others do not (in some countries it is also required that sales tax be included in the displayed price, for example). When listing on marketplaces, prices are considered tax-inclusive. For this reason, in some cases, it is important to check your tax settings before listing your products to ensure you are sending accurate pricing and not duplicating tax remittance.
Most retailers (particularly in the US) have their tax preferences set to NOT display prices inclusive of tax, rather add tax at checkout. In this case, it is important to have your website tax settings configured correctly to ensure Codisto is sending the correct pricing.
*Note* Tax settings are applied storewide meaning you must enter prices inclusive or exclusive of sales tax for your entire catalog.
WooCommerce makes it easy to check whether you are including tax in your product prices or adding at checkout. Retailers should always enter product pricing the same way that you'd like to display pricing on site. Tax settings should then be configured accordingly. If you are not including tax in your product prices then Codisto will recognize this and add the required sales tax when sending your data to the marketplace.
Enabling taxes in WooCommerce
- Go to WooCommerce > Settings > General
- Select the enable taxes and tax calculations checkbox
- Save changes
Configuring tax options
- Go to WooCommerce > Settings > Tax (only available if taxes are enabled above)
- Select preference for Yes, I will enter prices inclusive of tax or No, I will enterprise prices exclusive of tax
- Save changes
For more information on Settings up taxes in WooCommerce.