Product Tax/VAT Settings

As a seller, you will need to charge taxes on every sale made on your website. This will help you report and remit taxes to the government. You can set up taxes from this section to automatically handle tax calculations.

With this section, manage tax individually for each product. However, the system assigns the Flat Tax rate that Admin has set under the Tax-VAT Settings in Store Configurations.

If you want to have, a specific tax for each product, or do not want any tax to be applied to a product then manage such settings from this section.

Now, let's learn about how the inclusive and exclusive taxes are calculated for the products in the subtotal.

Tax-exclusive pricing is the most intuitive i.e. easy to understand and use. Sub-total is calculated for all the line items (products) subject to a specific tax code; then, the sub-total is multiplied by the appropriate percentage to obtain the tax amount. The tax amount is added to the sub-total to give the total.

To apply tax-exclusive pricing, go to the Admin >> Store Configuration >> Site Settings and search for the Tax/VAT amount include in Product Price.

Set the value as "Default" and save the setting. Now, the tax calculation will be exclusive of the product subtotal.

For example, if the cart subtotal is $38.99 plus the 10% flat tax. If the amount of $38.99 is tax-exclusive, a 10% tax is added to it, increasing the total to $42.89. The tax shows as an addition when you create an invoice:

When entering tax-inclusive prices, the situation is the opposite. In this case, the tax amount is already included in the sub-total.

To apply tax-inclusive pricing, you can select any one of the 3 options: Only Default Store, Only Store, or Both from the Tax/VAT amount include in Product Price setting.

In this way, the tax calculation will be inclusive of the product subtotal.

For example, you make the same purchase as in the previous example, using a payment form, but pricing is tax-inclusive. The resulting Total, calculated tax, and presentation change as follows. Here the tax amount i.e. 10% of Subtotal is already included in Subtotal.

Global Tax: This is the Flat Tax Rate set in Tax-VAT Settings. By default, global tax is applicable on any ordered product.

No Tax: Tax amount is set as zero for products marked with No Tax.

Specific Tax: You can choose to assign a specific tax rate for products. This tax rate will overwrite the global tax for the product.

Note: The below guide is for Indian Merchants only.

A Goods and Services Tax was implemented in India on July 1, 2017. This replaces other taxes applied by central or state governments such as Value Added Tax (VAT), Central Sales Tax, Excise Duty, and Commercial Tax, among others.

It is advisable by OnPrintShop for Indian Merchants to complete their GST registration. To check the eligibility and process, you can visit the ClearTax website. 

For the inter-state supply of goods and services, IGST (Integrated GST) is payable to the central government. For the intra-state exchange of goods and services, you need to pay CGST (Central GST) to the central government and an SGST (State GST) to your state government.

Learn more about GST categories.

To set GST from the Admin Panel, you can go through our Setup GST page from the Integrations section.