LiteCommerce:Configuring tax scheme

You can create and use unlimited numbers of tax conditions in your tax scheme. Also Litecommerce already contains some numbers of the default 'pre-defined' tax schemes, like: "One global tax value", "US state sales tax rates", "VAT system", "Canadian GST/PST system" and etc. You can use these schemes as pattern for your own schema, to load any of the pre-defined schemes use the "Reset tax schema" section (Admin area -> Taxes -> Reset tax schema).

During the tax schema creation process you should remember one necessary rule: the result tax should be single and it should be called "Tax". I.e. you can create many numbers of the secondary and tertiary taxes, for example "Country tax", "State tax", "City tax" and so on, but all of them should be summarized to the one result tax.

Let's imagine that we want to create a tax schema with two sub-taxes: "State tax" and "City tax" and without shipping rate (i.e. the shipping charge wouldn't be included into this tax schema). To do it you should perform the following steps:

1. Log into the admin area and open the "Taxes" page.

2. In the "Options" section we should have only one primary tax it should be called as "Tax". Please check it and re-create if you have some other taxes in this section.

3. Using the "Reset tax schema" section at the bottom of the page drop your old schema and load the "One global tax value". It'll be pattern schema for our own one.

4. Add default "State tax" condition:

• click on the "Add rate/condition" link in the "Rates/Conditions" section;
• into the "Tax name" field enter the "State tax" as value;
• into the "Tax value (%)" field enter the "0" (for example) value;
• click on the "Add" button to create default "State tax";

5. Add default "City tax" condition:

• click on the "Add rate/condition" link in the "Rates/Conditions" section;
• into the "Tax name" field enter the "City tax" as value;
• into the "Tax value (%)" field enter the "0" (for example) value;
• click on the "Add" button to create default "City tax";

6. Now we should add sub-taxes for some state and city. Create the 'country folder' for the "US" country, here are the steps to perform:

• click on the "Add rate/condition" link;
• in the drop down munu opposite to the "Countries" field select the "United States" value;
• click on the "Add" button to create "country folder";

7. Create a "state sub-folder" in this new "US folder" the same way as you did it:

• click on the "Add rate/condition here" link in the "country=United States" condition;
• in the drop down munu opposite to the "States" field select the "California" value (for example);
• click on the "Add" button to create "state sub-folder";

As a result in the "Conditions" section we have one 'country folder' (for US) and one 'state sub-folder' (for Cal.)

8. Now we can add the "State tax" for this state (Cal.):

• click on the "Add rate/condition" link in the "state=California " condition;
• in the drop down munu opposite to the "Tax name" field select the "State tax" as value;
• into the "Tax value (%)" field enter the "4" (for example) value;
• click on the "Add" button to create "State tax".

9. Add a "City tax" for the necessary city condition:

• click on the "Add rate/condition" link in the "country=United States" condition;
• in the "City" field enter the name of the necessary city (for example: "Test city");
• in the drop down munu opposite to the "Tax name" field select the "City tax" as value;
• into the "Tax value (%)" field enter the "1.5" (for example) value;
• click on the "Add" button to create "City tax".

10. Now we should exclude the "shipping charges" value from this tax scheme.

• click on the "Add rate/condition" link in the "country=United States" condition;
• in the drop down munu opposite to the " Product class" field select the "shipping service" value;
• in the drop down munu opposite to the "Tax name" field select the "State tax" as value;
• into the "Tax value (%)" field enter the "0" value;
• click on the "Add" button to create "State tax" for "shipping service".

11. Add the same "shipping tax" value for the "City tax":

• click on the "Add rate/condition" link in the "country=United States" condition;
• in the drop down munu opposite to the " Product class" field select the "shipping service" value;
• in the drop down munu opposite to the "Tax name" field select the "City tax" as value;
• into the "Tax value (%)" field enter the "0" value;
• click on the "Add" button to create "City tax" for "shipping service".

12. Now we should summarize these "State tax" and "City tax" as a result value of the primary "Tax" tax:

• click on the "Edit" link opposite to the "Tax =0%" tax in the "Rates/Conditions" section;
• in the "Tax value (%)" field modify the "0" value as a summ: "=State tax + City tax";
• click on the "Add" button to apply changes;

13. You can test this new scheme using the "Tax Calculator" feature.

• Click on the "Tax Calculator" link at the bottom of the "Rates/Conditions" section. The "Tax calc." page is appearing;
• Set the country as "US", state as "California" and click on the "Calculate tax" button;
• You should receive the following results:

Item taxes:

• Tax =State tax + City tax%
• State tax 4%
• City tax 0%

Taxes on shipping:

• Tax 0%
• State tax 0%
• City tax 0%

If you receive some other information, than something was done wrong.

14. That's all. THe new tax schema is ready to work. You can save this schema using the "Save the current tax schema" section at the bottom of the "Taxes" page.

15. Try to make a test order using this new scheme.