When Bold Checkout is installed to your BigCommerce store, you will have the options to set your own tax rates, use Checkout's calculated rates, or integrated TaxJar to your store.
This article will go over the different methods that your store can use to ensure tax is charged correctly, and in a way that is aligned with your business model.
When setting up your tax settings, there will two options that you can choose from that significantly change how these charges appear on your store. They are as follows:
Tax is Included
With this setting enabled, taxes will be included in your product prices. This means that tax will be calculated within the checkout, but will not be added to the product price.
If this setting is turned off, then taxes will be added to the total order cost within the checkout. This is more common to see within store checkouts.
Tax on shipping
This setting changes whether or not you charge extra taxes on shipping. These will be broken down underneath the Shipping in the order confirmation sent to your customers.
Custom Tax Rates
When creating a custom tax zone, the percentage that you place within this section will be used to calculate tax. Each tax rate within the countries for your custom settings will have to be defined, and will ensure that you will not need a Warehouse Zone within that specified zone.
Checkout Tax Settings
Using Bold Checkout as a Tax Provider means that our app will find the correct tax rates depending on the Warehouse that is currently set up on your store. Checkout can only automatically calculate your taxes in the USA and Canada.
It's important to note that as a general rule of thumb, taxes will only need to be charged in areas that your store has a presence (usually a nexus or warehouse). However, there may be laws specific to the zone that require you to charge taxes in additional areas.
For Checkout to automatically calculate the taxes, there needs to be a warehouse. The warehouse address must be a real address, but it doesn't need to necessarily be your store's address.
An example of the above is if your store has a warehouse in New York, USA. If a customer from New York makes a purchase on your store, they will receive charges for state and county tax (if applicable).
When customers from Seattle or Canada make a purchase, they will not get charged any tax.
Bold Checkout is integrated with TaxJar to simplify how your customer's tax rates are calculated within its checkout. This integration lets TaxJar calculate your customer's rates on their order directly through their service. TaxJar also collects al of your customer's tax information and files it on your behalf, on a pre-determined basis.
For more information on setting up a TaxJar account, please visit their website. To complete this integration, open Bold Checkout and navigate to Payments, then Tax Settings. Beside the "TaxJar" option, select Connect.
From here, you will enter your TaxJar API token.
The tax in Europe is called VAT (Value Added Tax). There are quite a few regulations with VAT, but we have some answers to frequently asked questions regarding this tax, below:
At this time, the taxes that are charged within your stores checkout are unable to be removed depending on the customers country. This means that if VAT taxes are currently set up on your store, it will have to be a default charge on all orders.
One way to resolve this would be to change the Tax Settings for your store so that the tax is added to the price of the item. This way, customers will get charged their taxes within your stores Checkout. You could add other apps to your store that will display included tax prices on the product page (which will need to be tested if you also use Bold Multi-Currency).
Bold Checkout is also unable to exempt specific customers on your store from being charged taxes.
When using the Bold Tax Service with Checkout, taxes are calculated based on your stores Warehouse location. This is specifically for stores based out of Canada, or the United States.
To enter your tax settings in Checkout, please follow these steps:
To set up your Tax Settings within Bold Checkout, follow these steps:
- From BigCommerce's admin, select Apps.
- Select Bold Checkout.
- Select Payment Options, then Tax Settings.
- Under "Charge Settings", select:
- Include taxes in the price of my products; and/or
- Add taxes to shipping cost.
- Select Create With Presets or Create Custom Zone.
- Create With Presets - Allows you to select predetermined tax rates on a per country basis, then save the group as a whole.
- Create Custom Zone - Allows you to set custom tax rates for a single or group of countries. This is the setting you will need to use for the US and Canada. They are not listed within the North America preset region.
Note: Selecting Bold Checkout on the "Choose your tax provider" option will automatically pull the most up to date tax rates we have for the selected countries.
- Under "Connect Tax Provider", select Connect. (optional)