Taxes

Location of seller

Depending on the location (country and state) of his business a seller may charge sales taxes or a value added tax.

That's why in Summer Cart admin panel you can create your exact tax type.

Type of products sold

Some products are taxable, others non-taxable or get charged at a reduced rate.

That's why is Summer Cart admin panel you can create your specific tax classes and group products according to their tax burden.

Destination of shipment

A store owner may ship only within his country, or within his state, but another may ship internationally.

That's why in Summer Cart admin panel you can create your specific  tax zones depending on where you ship to.

What a tax includes

What is it for?

Tax type

Sales of products and services are charged by different taxes depending on the country's fiscal policy. In some countries the government levies a sales tax, while in others a VAT (value added tax).

 
Example: The American and Canadian governments impose sales taxes whereas countries of the European Union levy VAT.  

Tax class

A group of products and services that attracts a certain tax rate.

 
Example: Books and newspapers in the UK are charged with 0% tax, while electronic equipment attracts 17.5% tax. Therefore books and newspapers refer to one tax class (non-taxable products), electronic equipment  to another (standard taxable goods).

Tax zone

A geographical region for which a certain tax goes into effect.

 
Example: All countries of the EU are separate tax zones whereas if you sell in the USA each state can be considered as a separate tax zone.

Tax rate

Tax rate is calculated on the basis of a tax class and a tax zone.

 
Example: If you sell cooking books (which is a tax class) and kitchen electric equipment (a second tax class) in the UK ( which is a tax zone) you will charge  0% VAT on the books and 17.5% on the tools. If you sell to the USA (a second tax zone) books and electric equipment will be charged by 0% tax as this is another zone.