To make your customers understand the exact price they have to pay, you may need to submit the taxes that you collect. Taxes are submitted based on the target country.
Tax requirements differ depending on the target countries.
- These countries shouldn’t have a tax attribute. VAT is only added in the price.
Argentina, Australia, Austria, Belgium, Brazil, Chile, Colombia, Czechia, Denmark, France, Germany, Hong Kong, Ireland, India, Indonesia, Italy, Malaysia, Mexico, New Zealand, Norway, the Philippines, Poland, Portugal, the Netherlands, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, Taiwan, Turkey, United Arab Emirates, United Kingdom.
For Canada, taxes must be displayed on the checkout site. Taxes shouldn't be included in a tax attribute or the final price.
Japan requires taxes to be included in the final price. Tax on the landing page can be displayed in any of these ways: Display the total price including VAT; Display the net price without VAT, and explain that taxes are excluded from the displayed price; Display the net price without VAT and list VAT separately.
- As for US taxation, the customer should set up tax rates for each state that you charge taxes for. Each state or local tax authority will have its own rules affecting how much tax you should collect based on where your business has nexus in. To understand which tax setting to use, you need to know if the states you have nexus in charge tax based on origin (on the seller's location) or destination (on the destination of the buyer)
Start setting up taxes for US by logging into your Merchant Center. Click "Tax" in the menu and select "Configure tax and set up nexus"
Click save and then follow the setup
Select one of the following tax options in each state:
- Use the manual option to enter a flat rate if you charge all the customer the same amount regardless of where you are located.
- Use the destination-based option if you charge taxes based on where your customer is located.
- Use the tax-categories attribute if you sell products in a state with a tax rate that differs from standard sales tax rates.
- Configure state, county, and city tax rates if you sell products in home rule states.
- Use the tax attribute if the products has non-standard tax rate or is exempt from tax.