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How is tax managed on shipping for international orders?

Firstly we must state that the shopping cart software is not an accounting program and thus, it's settings may be different than one, although settings have been developed with the advice of professionals in tax, retail and shipping. The following will explain some details to how tax is calculated over the shipping component of a sale.

Shipping is sold in the same way as a product within your checkout. It is essentially purchased by the merchant and then on-sold to the customer, just like a product. It is not a sale from the shipping company direct to your customer. For this reason, the merchant may set any price for the shipping on international orders. The tax component of shipping is then deducted for international orders during the checkout. If your shipping company is not charging tax for international shipping by default, it is best to add the equivelant tax to international shipping from your admin settings to compensate for the deduction during the checkout process.

Whilst in some countries this suits standard tax rules and in some, this may not, there's currently only one option available.

*Please seek the advise of accounting or tax professionals if required. The above explanation is not given as part of a paid service and your circumstances may vary.

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Shopping Cart Software by Ashop