# Configuring taxes

The Digital River Extension is responsible for providing the end tax calculation for the shopper navigating the checkout. The extension supports both tax-inclusive and tax-exclusive pricing models and handles all remittance and tax liabilities to local governments globally. The transactional tax is not calculated until after the shopper conﬁrms their billing and shipping address. Digital River does not support or allow the display of tax calculations that are not provided by Digital River. To ensure estimated tax and tax display is consistent throughout the pre-checkout pages, Digital River recommends the following conﬁgurations for tax, based on pricing models.

{% hint style="info" %}
**Note**: Each Magento website or store should be tax-exclusive or tax-inclusive for all products and shipping. One store should not use both or a mixture of inclusive and exclusive pricing.&#x20;

**Note**: The Digital River Extension for Magento cannot be used with other Magento tax partners and payment methods.
{% endhint %}

## Tax settings

To ensure the correct display of taxes in all situations, conﬁgure your Magento tax settings as follows:

1. Select **Stores**, select **Conﬁguration**, select **Sales**, and then click **Tax**.&#x20;
2. In the **Tax Classes** section, update **Tax Class for Shipping** to **Taxable Goods**.\
   &#x20;<img src="https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MNZuMZbk2cjWhdeZ51z%2F-MP6bE8GzdaqN3Jza8j0%2F-MP9hXqIrsWxeNe4SKFc%2F8TaxClassShipping.png?alt=media&#x26;token=ea0b3fc9-39c3-4fb0-a1ed-fc3d3bcb093e" alt="" data-size="original">&#x20;
3. In the **Shopping Cart Display Settings**, keep the **Display Full Tax Summary** set to **No**.\
   &#x20;<img src="https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MNZuMZbk2cjWhdeZ51z%2F-MP6bE8GzdaqN3Jza8j0%2F-MP9hbyrWnxpvMuojrVW%2F9DisplayFullTax.png?alt=media&#x26;token=6eff0090-9f67-46c3-aedd-3fc9ead6ef08" alt="" data-size="original">&#x20;

## Tax exclusive settings

To display tax exclusive values in your catalog, order summary, and checkout, configure your settings as follows:

1. Select **Stores**, select **Conﬁguration**, select **Sales**, select **Tax**, and then click **Calculation Settings**.
2. Verify **Catalog Prices** is set to `Excluding Tax` —this is the default setting.\
   &#x20;<img src="https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MNZuMZbk2cjWhdeZ51z%2F-MP6bE8GzdaqN3Jza8j0%2F-MP9hipUvoZPAd6SEt2P%2F10CatalogPrices.png?alt=media&#x26;token=230cd07c-c0a8-450f-8f9b-59820bad9d1d" alt="" data-size="original">&#x20;
3. On the same **Tax** page, click to expand the **Price Display Settings** section, the **Shopping Cart Display Settings** section, and the **Orders**, **Invoices**, **Credit Memos Display Settings** section. In each section, verify the following are also conﬁgured for `Excluding Tax`—these are the default settings.\
   &#x20;![](https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUD3xen8TtEyNM61Si24h%2Fuploads%2FiCpl83OaxhjwatSorXqm%2FPrice-Display-Settings.png?alt=media\&token=308a74dd-5b05-4ce4-b39d-c7109e7ffe5d)&#x20;
4. All prices in the catalog must be exclusive of tax.

## Tax Inclusive settings

To display tax inclusive values in your catalog, order summary, and checkout, configure your settings as follows:

1. Select **Stores**, select **Conﬁguration**, select **Sales**, select **Tax**, and then click **Calculation Settings**.\
   &#x20;<img src="https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MNZuMZbk2cjWhdeZ51z%2F-MP6bE8GzdaqN3Jza8j0%2F-MP9i1QEeZAExdW8I8Qf%2F13PriceDisplaySettings.png?alt=media&#x26;token=2a0b98d4-f894-4baf-a0c5-4e5bcdf80775" alt="" data-size="original">&#x20;
2. Click the **Catalog Prices** dropdown list and change the setting to `Including Tax`.\
   &#x20;<img src="https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MNZuMZbk2cjWhdeZ51z%2F-MP6bE8GzdaqN3Jza8j0%2F-MP9i73jZuDKBE-iLYox%2F14CatalogPrices.png?alt=media&#x26;token=ea46b692-f149-480c-a5db-d5906a55c31d" alt="" data-size="original">&#x20;
3. On the same **Tax** page, click to expand the **Price Display Settings** section, the **Shopping Cart Display Settings** section, and the **Orders, Invoices, Credit Memos Display Settings** section. In each section, update the configuration to `Including Tax`.

## Understand estimated tax in cart

Adobe Commerce’s Estimated Tax cart feature obtains the tax amount from Digital River. For this to occur, make sure that you have provided all of the required information for the fields in the Magento Estimate Shipping and Tax module.

<img src="https://2174805985-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FUD3xen8TtEyNM61Si24h%2Fuploads%2Fw6kxaAi62CiWcneRdlJR%2Fimage.png?alt=media&#x26;token=df2767eb-9efb-42d9-8350-9f9f87966016" alt="" data-size="original">

For more information about the Adobe Commerce tax settings and cart, refer to [General Tax Settings](https://docs.magento.com/user-guide/tax/tax-settings-general.html) and [Shopping Cart](https://docs.magento.com/user-guide/quick-tour/shopping-cart.html) in the [Adobe Commerce User Guide](https://docs.magento.com/user-guide/).&#x20;
