Overview
SOLO allows defining tax rules for the following when the tax calculation mode is set to "Tax Rules":
US States
Canadian Provinces
Countries
Global (all countries)
When calculating taxes, the tax rules are searched as follows:
For international (non US/CA) orders, the system will first look for a country tax rule and apply it if found. If not found, it will next look for a global tax rule and apply it if found.
For US/CA orders, the system will first look for a state/province specific tax rule and apply it if found. If not found, the system will next look for a US/CA country tax rule, and if found this will be applied. If neither is found, the system will finally look for a global tax rule and apply that tax if found.
When the tax calculation mode is set to "European Union VAT", the rules are configured specifically against the European Union.
To configure the tax rules, choose Authors->Storefront->Sales Tax Rules from the menu. This will bring up the tax rule listings, separated as follows when in Tax Rules tax calculation mode:
United States Tax Rules
Canadian Tax Rules
Country Tax Rules
When in European Union VAT tax calculation mode, only rules applicable to the EU as a whole will be displayed. To add a new tax rule, simply click the Add link in the heading, while to edit or delete existing rules, click the Edit or Del links in the listings.
Tax Rule Configuration
When adding or editing a tax rule, the fields are as follows:
Global tax - Check this checkbox to specify a global tax rule. When checked, the Country and State/Province fields will be hidden. This is not displayed when using European Union VAT tax calculation method.
Country - Select a country for country or US State/CA Province tax rule. This is hidden for global tax rules. This is not displayed when using European Union VAT tax calculation method.
State/Province - Enter the 2 character state/province code for a US State or CA Province tax rule, or leave blank to specify a country wide US or Canadian tax rule. This is hidden for global tax rules and country tax rules that are not US or Canadian. This is not displayed when using European Union VAT tax calculation method.
Type - Select whether the tax should be applied to physical delivery only, electronic delivery only, or both. Physical delivery products are those products with the "Requires Shipping" checkbox checked on the option details page.
Include Shipping - Check this checkbox to specify that the tax should also apply to shipping costs. This is only available for "Physical Delivery" or "Both Physical and Electronic Delivery" tax types.
Tax Rate - Enter the tax rate as a decimal (0.07 instead of 7%).
Refer to Collecting Sales Tax for important information.