Absorb supports Automatic Tax Rates for the USA, Canada, and the European Union. Additional Tax Rates can be configured as well. Tax Rates are configured independently for payments processed through the Payment Gateway and Manual Payment Methods.
Automatic Tax Rates
We currently support Automatic Taxes for the US, EU, and Canada. Our Automatic Tax Rates are based on the location of the User/Learner. 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.
The Automatic Tax Rates options are located under the Payment Gateway section of E-Commerce settings.
Automatic Tax Rates can be enabled for payments processed through the Payment Gateway in the Tax Rates section.
Additional Tax Rates
Additional Tax Rates can be set up at a variety of different levels, including local city level.
Additional Tax Rates can be configured so that the different levels stack up and create the appropriate tax configuration for your needs.
Please note that when checking out, the UI is limited to display the Tax Rate to two decimal places, but the tax will be calculated using the originally entered rate. For example, Quebec has a PST of 9.975%. This appears as 9.98% when checking out. Note that this is only due to a UI limitation, and not the Tax Rate being rounded up.
Additional Tax Rate Types
When building an Additional Tax Rate you will be asked to select the Type. This selection refers to specific conditions which will cause the Additional 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 Additional 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 Additional Tax Rates 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 Additional Tax Rate 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. |
Tax Rates for Wire Transfer, Purchase Orders, and Checks
Tax Rates for Wire Transfer, Purchase Orders and Checks can be setup by selecting a Country as well as a State/Province.
Additionally, the Includes Country Tax option enables you to determine if the tax accounts for country level tax by setting this to On.
The Name that is configured will be displayed to Learners during the checkout process.
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