Applying tax to both product items and shipping costs

is it possible to have taxes calculated against both the products themselves AND the shipping charges? Currently I think taxes are calculated based on the products themselves and it does not include the shipping charges, but my customer would like their store to apply taxes on both the cost of the products as well as any shipping costs.
Comments
  • fc_adamfc_adam FoxyCart Team
    @freshjones,

    Good question. In 2.0 - if the tax is set up to a manually set tax rate - you will have the option to also apply that tax to any shipping costs in the order. If you set the tax to calculate automatically using one of our tax databases - that will dictate for you, based on the address entered, whether shipping should be taxed or not.

    Is this for the Chroma store? If so - looking at the tax configuration there, it's set to automatically calculate taxes, and so the database will be dictating whether that particular rate should be taxed or not. If there is a specific address you believe should have shipping taxed which isn't - if you could let us know which address that is we'd be happy to confirm that with the provider of the tax data.
  • it is for the chroma store, that's interesting, so the tax provider determines whether or not to include tax on shipping based on the address? so some addresses may tax shipping and others may not? I'm not sure my customer knows this, i'll talk with them and see if there is a particular address they were concerned about, but my guess is they just wanted it to be consistent. Do you happen to know if all the tax providers do this the same way? that is determine based on address whether or not to include shipping costs in the tax? thanks for your help. i appreciate it!
  • marijamarija FoxyCart Team
    Hi @freshjones

    Different states have different laws around charging taxes on shipping, that's why the tax provider will have rules set up on their side on whether or not to include shipping in the tax calculation. Here's a quick article (last updated July 11, 2017): https://blog.taxjar.com/sales-tax-and-shipping/

    The comments are interesting to scan as well. I'm pretty sure that all FoxyCart automatic tax lookup services all do dictate whether shipping should be taxed or not–perhaps @fc_adam can confirm. I don't know if all tax providers do, but since they're designed to make things easier, I can't imagine they wouldn't–that said, I'd always check directly with the tax provider.
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