Creating and modifying tax classes

Create and adjust tax classes to ensure your customers always pay the correct tax.

A tax class is a collection of tax rates. For example, a tax class called Standard Rates may comprise all the regular GST, PST, and HST sales tax rates per Canadian province/territory. 

Whenever you add a new product to your store, you'll assign it to one of your tax classes.

In this article, you'll learn how to:

• Add a new tax class
• Add a new rate to a tax class
• Modify a rate
• Remove a tax class or rate

Adding a new tax class

If you start selling a type of product that doesn't fit any of your existing tax classes, you can create a new class.

1. Go to Settings > Tax Class and click +Add Class.
2. Give your new tax class a recognizable name and click Save. The class will appear in the top ribbon.

You can now start adding rates to your tax class.

Adding a new rate to a tax class

1. Go to Settings > Tax Class. In the ribbon, select the tax class you want to modify.
2. Click Add New Rate at the lower right corner of the tax rates list.
3. Input the following information about your new rate:
   • Country Code
   • State (or province)
   • Post Code and City - Fill in these fields only if the rate pertains to a single post code or city in the state/province. Leave blank to apply the rate to all post codes and cities.
   • Rate % - Enter this as a percentage
   • Tax Name - e.g. GST or HST
   • Priority - Note that when multiple rates apply to a single geographic area, each one must have a unique priority level. 1 is the highest.
   • Compound - If this rate applies on top of prior taxes, check this box.
   • Shipping - If this rate also applies to shipping, check this box.
4. When you're finished, click Save (located under the Country Code field).

Modifying an existing rate

To change any attributes of an existing rate:

1. Go to Settings > Tax Class. In the ribbon, select the tax class that contains the rate.
2. Click Edit underneath the rate in the list. This will allow you to edit any fields related to this rate.
3. When you're finished, click Save.

Removing a tax class or rate

You can delete tax classes and rates in Settings > Tax Class.

To remove a class, select the class using the top ribbon and click Remove Class (located to the right of the screen).

To remove a rate, select the class it belongs to, then click Delete under the rate in the list.