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How Do I Set Sales Tax in WooCommerce?

Last updated on October 2, 2022 @ 12:04 am

If you’re running a WooCommerce store, you’ll need to set up sales tax at some point. Sales tax is a tax that’s levied on the sale of goods and services. In most jurisdictions, it’s the responsibility of the seller to collect and remit the tax to the government.

WooCommerce makes it easy to set up sales tax for your store. In this article, we’ll show you how to set up sales tax in WooCommerce.

First, you’ll need to go to WooCommerce > Settings in your WordPress dashboard. On the General tab, scroll down to the Tax section and click on the link that says “Enable taxes and tax calculations.”

This will take you to the WooCommerce Tax settings page. Here, you can choose whether to display prices with or without taxes, as well as whether to calculate taxes based on the customer’s shipping address or billing address.

Next, you’ll need to click on the “Standard Rates” tab. Here, you can add your tax rates for each country or region that you sell to. For each rate, you’ll need to specify the country or region, the state or province (if applicable), the city or zip code (if applicable), and the rate itself.

Once you’ve added all of your rates, click on the “Save Changes” button at the bottom of the page. That’s it! You’ve successfully set up sales tax in WooCommerce.

Now let’s take a look at how to add taxes to your product prices.

If you want to add taxes to your product prices, you’ll need to go to WooCommerce > Settings and click on the “Products” tab. On this page, scroll down to the “Taxes” section and make sure that the “Enable taxes and tax calculations” checkbox is selected.

Next, scroll down to the “Prices entered with tax” dropdown menu and select either “Include tax in prices” or “Exclude tax in prices.” If you select “Include tax in prices,” taxes will be added to your product prices automatically. If you select “Exclude tax in prices,” you’ll need to add taxes manually when creating or editing products.

Finally, scroll down to the “Tax rounding” section and choose how you want WooCommerce to round taxes on products and orders. Once you’ve made your selections, click on the “Save Changes” button at the bottom of the page.

And that’s it! You’ve now successfully set up sales tax in WooCommerce.

PRO TIP: If you are using WooCommerce to sell products online, it is important to understand how to set up sales tax correctly. Failure to do so could result in you owing money to the government in back taxes, penalties, and interest.

Now that you know how easy it is to set up sales tax in WooCommerce, there’s no excuse not to do it! Just remember to stay compliant with your local laws and regulations regarding sales tax.

Morgan Bash

Morgan Bash

Technology enthusiast and Co-Founder of Women Coders SF.