To configure tax, you must first have a zone configured to specify what region the tax applies to. If you ship to multiple regions where you charge tax based on where you are shipping to, you will need a zone for each different tax rate. Each region may be a country or if tax varies by state, you may need a zone for each state. You should consult with your accountant to find out all you need to know regarding charging tax to your customers.
Watch this video for an overview of how to configure tax.
How to configure Tax
To create your first Tax, head over to your Salesforce app launcher, and search
storeconnect and choose the StoreConnect Config app.
From StoreConnect Config, click the Taxes Tab then click the New button.
Here you can enter the details that fits your tax. For this example let’s enter the following details:
Name: Australian Goods and Services Tax
Display Name: GST
Tax Rate: 10%
Based On Ship Address: ticked (if ticked the tax will be calculated based on the zone the shipping address of the customer fall into, if unticked the tax would be calculated based on the zone the billing address of the customer is in)
Zone: select the applicable zone
Effective Start Date: select a start date
Effective End Date: You do not need an end date unless this tax rate ends and is replaced by another on a specified date in the future
Once you have entered all the information, click Save.
Linking a Product to Tax
A product can be associated to multiple taxes. eg: a tax for each zone this product may be sold in.
- Find the Product Tax related list on the products page layout.
- click on the New button
- Select the tax you wish to apply to this product
- Click Save
- Repeat for any other taxes that apply
Now test it out by adding your product to a cart, start the checkout process and set your shipping address to the zone the tax applies to, click next and see that the tax is then calculated in the order summary.
Configuring Tax for Bundled Products
Where a product bundle contains multiple products, all with the same tax rate, you would configure it the same as above. If however, you have a bundle with taxable items mixed with non-taxable items, or mixed with items of different tax rates, you could configure your bundle’s tax this way:
Work out the tax % for the bundle as a whole and create a tax rate to be used by that bundle.
- Separate out tax from the full price for each item in the bundle
- Add the tax components together (T)
- Add the exclusive of tax product prices together (P)
- Divide the tax component by the products ex tax component and see what percentage you get (T / P = Bundle’s Tax Rate)
As an example, if you end up with something like 0.075, you would charge 7.5% tax for that bundle.
Now create the tax record and assign it to your product.
- Create a Tax record and name it so you and everyone else knows that is the tax rate for this bundle
- Set the percentage to your calculated amount
- On your Bundle Product, set the Product Tax using your new tax record
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