Setting Up Tax Rates

Absorb supports Manual and Automated Tax Rates, which can be setup by System Administrators under Portal Settings > Manage E-Commerce Settings > Tax Rates.

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Automated Tax Rates

We currently support Automated Taxes for the US, EU, and Canada. Our Automated Tax Rates are based on the location of the User/Learner who will receive the course. These rules consider Country, State/Province, and City Taxes. The tax database which determines the Automatic Tax Rates is updated regularly and requires no action on behalf of System Administrators.

To set up Automatic Tax Rates follow these steps:

  1. As a System Administrator navigate to the Admin Interface and open Portal Settings.

  2. Click Manage E-Commerce Settings from the right-hand side menu.

  3. Open the Tax Rates section of the Edit E-Commerce Settings page.

  4. Click the + button to the right of the Automatic Tax Rates field. A drop-down list will open.

  5. From the opened drop-down list, select your preferred economic zone. E-Commerce will automatically calculate tax when processing a customer purchase made by Credit Card or PayPal.
  6. When you are done, don't forget to use the Save action from the right-hand side Actions menu.

 

Manual Tax Rates

Manual Tax Rates can be setup at a variety of different levels, which are all capable of stacking together. This allows even City Taxes to be setup in a straightforward fashion. Manual Tax Rates are also based on the Location of the User who will receive the item(s) being sold. If you are required to charge additional taxes on a User's LMS purchase, you can add them by repeating the Manual Tax Rate processes as described below.

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Tax Rates for Credit Card and PayPal Transactions

To setup Manual Tax Rates for Credit Card and PayPal Transactions follow these steps:

  1. As a System Administrator navigate to the Admin Interface and open Portal Settings.

  2. Click Manage E-Commerce Settings from the right-hand side menu.

  3. Open the Tax Rates section of the Edit E-Commerce Settings page.
  4. Under the Tax Rates for Credit Card and PayPal Transactions section, click Add Tax Rate. A new Manual Tax Rate will appear, without any information.


  5. Click Type. A drop-down list will appear.
  6. From the drop-down list, select your preferred option. Details about Manual Tax Rate Types are in the section below.

    • You may be asked to enter Country, Province or City depending on the Manual Tax Rate Type that you select.
  7. Under the Tax Rate section is a field. Add the numerical value here (in whole number format) to indicate the percentage of taxation that will applied.
  8. Under the Tax Label section is a field. Add the taxation label that will be displayed to your Users, next to the amount of a particular tax charged on their purchase.
  9. When you are done, don't forget to use the Save action from the right-hand side Actions menu.

 

Tax Rates for Wire Transfer, Purchase Orders, and Cheques

To setup Manual Tax Rates for Wire Transfer, Purchase Orders and Cheques follow these steps:

  1. As a System Administrator navigate to the Admin Interface and open Portal Settings.

  2. Click Manage E-Commerce Settings from the right-hand side menu.

  3. Open the Tax Rates section of the Edit E-Commerce Settings page.
  4. Under the Tax Rates for Wire Transfer, Purchase Orders, and Cheques section, click Add Tax Rate. A new Manual Tax Rate will appear, without any information.


  5. Under the Country section, click the field to open a drop-down list of available Countries. Select your desired Country from the drop-down list.

    • The Add State or Provincial Tax Rate option may appear at the bottom of the Manual Tax Rate. This will be handled in Step 8.

  6. Under the Tax Rate section is a field. Add the numerical value here (in whole number format) to indicate the percentage of taxation that will applied.
  7. Under the Tax Label section is a field. Add the taxation label that will be displayed to your Users, next to the amount of a particular tax charged on their purchase.
  8. Once you choose a Country, the option to add a State or Provincial Tax Rate will only be displayed if you chose a Country where you are required to charge Regional Taxes on a purchase. Click the Add State or Provincial Tax Rate button to open the State/Province Tax Rate section.

  9. The first field is a drop-down list. Click this field to open the list and select the intended State/Province.

  10. Under the Tax Rate section is a field. Add the numerical value here (in whole number format) to indicate the percentage of taxation that will applied.
  11. Under the Tax Label section is a field. Add the taxation label that will be displayed to your Users, next to the amount of a particular tax charged on their purchase.
  12. Under the Includes Country Tax section is a toggle. Click the toggle to switch it between NO and YES. Set the toggle to YES only if this is a tax situation where a National and Regional Tax are combined together in one tax charged at the Territorial level.

  13. When you are done, don't forget to use the Save action from the right-hand side Actions menu.

 

Manual Tax Rate Types

When building a Manual Tax Rate you will be asked to select the Type. This selection refers to specific conditions which will cause the Manual Tax Rate to be applied. The definition for each of the Tax Rate Types is as follows:

Global Will apply to the order regardless of the shipping or billing information.
Country Will apply the Manual Tax Rate only if the Country entered in the tax's settings matches the User's shipping Country (or billing Country, if no shipping address is present).
Region Will apply only if the Country and State/Province entered in the Manual Tax Rate's settings match the User's shipping address (or billing Country, if no shipping address is present).
Local Will apply only if the Country, State/Province, and City entered in the Manual Tax Rate's settings match the User's shipping address (or billing country, if no shipping address is present).
European Union Will apply if the User's shipping Country (or billing Country, if no shipping address is present) is an EU member state.

 

 

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