Step 4: Configure tax

Learn how to configure tax for your store.

Configure tax settings

To configure tax settings:

1. Click Settings in the menu on the left and then click Tax.

2. Click Enable to enable Digital River as a tax service. A green ENABLED text box will appear next to Digital River.

   
3. Click Edit under Tax Settings.

4. In the Tax Label field, type the label you want to use to describe this tax option.

   
5. Under Prices Entered With Tax, and choose No, I will enter prices exclusive of tax.

   Note: You must set the Prices Entered with Tax dropdown to No, I will enter prices exclusive of tax.

   
6. Under Fallback Tax, and choose Use my manual Tax settings.

   
7. Select the specified option from each of the following dropdown menus:

   • Calculate Tax Based on: Destination Address

   • Shipping Tax Class: Shipping

   • Gift Wrapping Tax Class: Gift Wrapping

     
8. Under Configure Tax Display Settings, select the specified option from each of the following dropdown menus:

   • Show Prices Within Control Panel: Excluding Tax

   • Show Prices on Invoices: Excluding Tax

   • Show Tax Charges in Cart and Checkout: Broken down by tax rate

   • Show Tax Charges on Orders and Invoices: Broken down by tax rate

     
9. Optional. Under Configure Default Tax Address, select a country from the dropdown menu.

   
10. Optional. Select a state from the dropdown menu, if applicable.

11. Optional. Enter a postal code, if applicable.

12. Click Save.

Configure the tax rates and zones

To configure the tax rates and zones:

1. From the Tax page, scroll down to Set up your own tax rules and click Edit for Manual Tax.

2. Click the Tax Rates & Zones tab.

3. Click Add Tax Zone.

4. In the Tax Zone Name field, type the name you want to use for this tax zone.

   
5. Choose one of the following options for Tax Zone Type:

   • This tax zone is based on one or more countries

   • This tax zone is based on one or more states

   • This tax zone is based on one or more postal codes

6. Select the appropriate country or countries from the Country list.

   
7. Choose the All customers in my store option for Tax Zone Applies to.

   
8. Select the Enable this tax zone check box.

   
9. Click Save.