# Configuring taxes

Digital River automatically calculates taxes for you. All you have to do is tell us whether [taxes are included or not included in your price list](#setting-the-price-list-to-tax-inclusive-or-exclusive) and [shipping cost](#setting-the-shipping-cost-to-tax-inclusive-or-exclusive). 

{% hint style="info" %}
How [taxes should be displayed](#guidelines-for-displaying-tax-1) to a customer during the shopping experience depends on the country.
{% endhint %}

## Setting the price list to tax inclusive or exclusive

Use the Prices Include Value Added Tax (VAT) dropdown list in [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do) to set a price list to tax inclusive (Yes) or tax exclusive (No).  If you are using the landed costs feature, you must set Prices Include value Added Tax (VAT) to No.  

You need the Pricing Manager role to perform this task.

1. Sign in to [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do).
2. If your company has more than one site, select the site from the **Sites** field. If your company has only one site, Global Commerce automatically populates the **Site** field.\
   &#x20;<img src="https://2721412755-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-LzlYMEYC0GeLSgnsft6%2F-MGrznhfDfyJa8COkmJp%2F-MGs1vEHVjNprYG5SEvN%2FSites.png?alt=media&#x26;token=438882c0-8169-4996-97e2-6e672a2dc55b" alt="" data-size="original">&#x20;
3. Select **Catalog**, select **Pricing & Plans**, and click **Manage Price Lists**. The Price Lists page appears.
4. Complete the search fields under the **Search and Filters** tab and then click **Search** ![Search](https://help.digitalriver.com/help/Resources/Images/Shared/search.png) to locate the specific price lists. The results appear in the Price Lists list.
5. Click the link for the price list under the **Name** column. The Price List Details page appears.
6. Scroll down to **Currencies** and click **Edit**. The Edit Price List Currency page appears.
7. Select the currency you want to modify from the **Currency** dropdown list.
8. Select **Yes** for tax inclusive or **No** for tax-exclusive from the **Prices Include value Added Tax (VAT)** dropdown list.
9. Click **Save**.

## Setting the shipping cost to tax inclusive or exclusive

Shipping taxes are automatically calculated.&#x20;

If you toggle Input Tax-Inclusive Shipping to ON in [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do), will handle input shipping costs based on the tax-inclusive flag of the price list. When the toggle is ON, it will refer to the configured price list as follows:&#x20;

* If the price list is tax inclusive, then the shipping and handling fee (`shippingAndHandling`) is tax inclusive.&#x20;
* If the price list is tax exclusive, then the shipping and handling fee is tax exclusive.

When the toggle is OFF, the shipping and handling fee will always be tax exclusive.&#x20;

{% hint style="info" %}
You need the Content Manager role to perform this task.
{% endhint %}

1. From [Global Commerce](https://gc.digitalriver.com/gc/ent/login.do), select **Administration**, select **Site**, and click **Configure Site Settings**.
2. Click the **Features** tab.
3. Scroll down to **Input Tax-Inclusive Shipping Cost**.
4. Toggle [**Input Tax-Inclusive Shipping** to **ON** or **OFF**](#guidelines-for-displaying-tax).
5. Click **Save**.

## Guidelines for displaying tax <a href="#guidelines-for-displaying-tax" id="guidelines-for-displaying-tax"></a>

The display of tax during the entire shopping experience should follow [these guidelines](https://digitalriver.service-now.com/kb?id=kb_article_view\&sysparm_article=KB0010559\&sys_kb_id=a6423b4c1b769090f4304158dc4bcbc3\&spa=1) *(access required)*.