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Confused about taxes


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I find the entire system of taxes and tax rules very confusing. I've read the documents and still can't say I really understand how it is supposed to work.

 

It would seem that I should have lots of taxes and perhaps only one tax rule. Right? But I have just as many rules as taxes, one for each locations. In fact, it's not clear why I have any rules, shouldn't the only rule be "shipping address", and new rules only required for special cases?

 

And why is this selected in the product? Perhaps this is just my server, but in order to get any taxes to apply I have to select the rule in each and every product? This makes no sense whatsoever.

 

Am I missing the whole idea? Or is the tax system as confusing as it seems to be?

 

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Why don't you start by defining your tax requirements. 

 

1) Do you collect taxes for every order?

2) Do you have some products that are exempt from tax

3) Do you pay or collect tax on shipping

4) Do you collect tax only in the State that you operate in? 

5) Do you collect tax only when the shipping address resides in the State that you operate in

6) Do you need to collect different tax rates based on the location of the shipping address (ie.  Zipcode 1=5% and Zipcode 2=8%)

 

Taxes can be a very complex thing, and sometimes complex things require complex solutions.  So once you have contemplated what your requirements and needs are, then we can discuss further how to configure your taxes

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Great list! Here, let's try this…

 

1) Do you collect taxes for every order?

Yes

2) Do you have some products that are exempt from tax

No

3) Do you pay or collect tax on shipping

Yes.

4) Do you collect tax only in the State that you operate in? 

Country.

5) Do you collect tax only when the shipping address resides in the State that you operate in

Country, yes.

6) Do you need to collect different tax rates based on the location of the shipping address (ie.  Zipcode 1=5% and Zipcode 2=8%)

There are three rules, in Ontario, out of Ontario but in Canada, out of Canada.

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So sounds like you need a single Tax Rule with three tax rates defined

 

So start by creating three tax rates in the "Taxes" section

1) In Ontario = xx %

2) Out of Ontario = xx %

3) Out of Canada = xx %

 

Then create a new Tax Rule, named whatever you like and define the following rules within it

1) First create a rule using ...

Country=Canada

State=Ontario

ZipCode=0

Behavior=This tax Only

Tax=In Ontario

 

2) Second create a rule using ...

Country=Canada

State=Select everything except Ontario

ZipCode=0

Behavior=This tax Only

Tax=Out of Ontario

 

3) Third create a rule using ...

Country=All

State=not applicable

ZipCode=0

Behavior=This tax Only

Tax=Out of Canada

 

The last one will likely create duplicate Canada tax rules, but since we are using the "This Tax Only" behavior they should be ignore.  If they are not ignore, then delete the duplicates

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Right, so why are there individual rules for every state, province and everything else?

Prestashop gives you examples, use them or delete them and move on.

 

 

And once I have set up the rules I want, do I need to apply them o my 600+ products one by one?

Since you are creating a new Tax Rule, you will need to apply it to all of your products.  It does not need to be one by one.

 

Below are the commands you will run to update all of your products.  You do this using phpmyadmin.  Replace '0' with the Id of your Parent Tax Rule, which you will know after you create it.

UPDATE `ps_product` SET `id_tax_rules_group` = '0';
UPDATE `ps_product_shop` SET `id_tax_rules_group` = '0'
And which rule do I apply?

If you use my approach above, you are only creating 1 Parent Tax Rule, which is the rule you would apply.  I know this part is confusing, because a "Tax Rule" has tax rules within it.  Not the smartest naming convention by prestashop, but you learn to deal with it.

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