NOTE: Order multiple tax calculation is available for e-commerce platforms below:
- CCV Shop
- Magento 2
For other platforms, you can select only one default tax class - Order tax calculation settings
As the EU has recently introduced new tax rules to facilitate cross borders trades and combat tax frauds, Koongo set up an Edit Store section Order Taxes by Countries to help merchants with the tax calculation across the countries.
As you know, your products can have different taxes. For example normal tax and lower tax. And you determine which product uses which tax class.
The section contains 3 different fields:
- Calculated by: As a default option the order taxes are calculated based on products or store settings. However, the merchants can choose to calculate the taxes according to the country in the billing address or the country in the shipping address by choosing one of them from the menu.
- Default Order Tax for each Product Tax Class: If the order tax is calculated by shipping or billing address. The merchants can choose, and add in this field, tax rates that are valid for all the countries. There are multiple tax rates. One for each tax class used in your products.
- Country Taxes for each Product Tax Class: If order tax is calculated by shipping or billing address. The merchant can specify tax rates for each country adding the country code and its taxes as shown in the below image. There are multiple tax rates. One for each tax class used in your products.
When shipping (or billing) country matches one of the countries added, that tax rate from product tax classes will be used. If a country is not on the list the default rate specified by the product tax rate will be used. If also the default tax is empty then the product tax is used. If also product tax is not specified, store tax will be used.
Here you can find the tax priorities, from the highest to the lowest so you can choose how to apply them from:
- Channel: Tax is already defined in channel data (e.g. Amazon).
- Koongo: If the merchant applies choose this set up from Edit Store.
- API: Available for Magento2 only.
- Product: Each product should have a tax rate defined in its attributes.
- Default Store: If the product does not contain a tax rate this option will be used.
We also offer a couple of order attributes that describes which setting and taxes has been selected.
Order detail -> general -> header -> Final Tax Rate = tax value used in this order
Order detail -> general -> header -> Final Tax Based On = order tax method used
Order detail -> items -> custom attributes -> Tax Class = Tax class of your product (will be selected to final tax rate calculation)