How to setup Taxes in Woo-Commerce Explained in Detail [ Part-1]

[Music] guys welcome to gb's academy so we were into the mid of this woocommerce series woocommerce for beginners 2020 series where we have learnt about woocommerce almost all the basics we have covered we have seen how to install woocommerce and how to install frontend templates simple products group products variable products how to add affiliate products how to add how to set up woocommerce settings right so now in this video we'll be talking about taxes how you can charge right if you have an e-commerce store it is uh mandatory unless there is a special rule or order from your government in which prov in which province you stay right your store resides so based on that based on the country state you will have different regulations and based on that you will have to charge your customers so i i'm right now located in india and in telangana so i'll have to set up taxes to charge my customers based on the government regulations right so before we talk about taxes let's see what is the current process uh what till where we have come right so this is our website dummy website of course so this is this is our dummy product and if you open the product and if customer comes here he can add to cart and then view cart so i have two products in my cart right so i can change the quantity i can update the quantity click on update card and the rate will be updated as per uh the quantity of the products four and five fifth one so five products so it is 94 rupees right so if i go to proceed to checkout checkout page you can see here i have two options cash on delivery and paypal so cash on delivery and paypal are the default payment methods that we get right from woocommerce itself we can enable or disable that i will talk more about the payment gateways in our next video but for this let's keep it as it is what we need to focus is the product pricing how much we are charging the customer so there are there is the product this dry fruits quantity 4 and its our store is charging 60 rupees and then this product it's charging 34 rupees and the total is 94. we are we are not charging any tax right so our job in this video will be to charge tax to this particular cart item right to set up taxes correctly so let's go to back end of this website what you need to do is go to woocommerce and under woocommerce you have this option called as settings click on that okay now once you enter into this settings page you should be seeing this option called as tax the third option and if you are configuring your store for the first time you will not have this option called as tax so what you need to do is go to general under general you have this option called as enable taxes you need to make sure that you have enabled this option if you disable this option what happens is the tax settings option will go right so the tax option has gone now so to enable the tax option in our store what we need to do is first enable this tax rates and calculations click save and now let us go to tax tab ok once you enter into the tax lab you will have this option called as tax options standard rates reduced rates zero rates these three rates here mentioned which you are seeing here is provided by default of course there is no tax uh available here we need to add tax and we need to mention what is the rate of tax that we need to charge so before before we explore these three options let's see what are the tax options available for us so first is you prices entered with tax while you add your product while you add your product here do you wish to add product price including the tax or excluding the tax you need to mention it here so i will uh few store owners prefer to include the tax amount as well in the price but it is not it is best practice to exclude the tax price and only show the tax in the last step that is in checkout page right most of the e-commerce companies follow this procedure so let we will also follow the same thing no you need to select this no i will enter the prices exclusive of taxes so the taxes will be calculated automatically in the checkout page now the second option is calculate tax based on customers shipping address billing address or shop base address generally taxes are calculated based on where we are sending the product from our store right so depending upon that condition you need to select in india we charge customers based on the customer's location in the sense where the customer in the sense where the product is being delivered based on that we charge cgst as gst and igst so that i'll have to select this customer shipping address has to be considered to calculate the tax and depending upon your rules and regulation for taxes you need to consult your tax consultant just to confirm that which which location has to be considered to charge the tax generally in the 90 90 of the cases it will be shipping address itself right i'll select the shipping address here and then coming to shipping tax class so here we have this option called as shipping tax class based on cart items or standard reduced or zero either universally you can assign some of this tax available three tax i'll show you in uh in an i'll show you in some time that how to add more tax taxes as well here but for now let's consider these are the three tax available with us or you either you can assign any single tax class to all the products or else you can also select shipping tax class based on cart items let's select this because let's say we have 10 products which should be charged standard rate and we have five products that should be charged reduced rate and there are one or two products which doesn't qualify for any tax so in that case we'll have to select this first option that is shipping tax class based on the cart items in case you think that all the products will be charged on the same tax then you can select a universal tax here itself right so now rounding tax at sub total level instead of rounding per line it is your choice you can as you can check this box or keep it unchecked and then here additional class tax here i'll tell you an interesting fact so here if you add and click on save can you see here this the igst tax rates another one more option has been created and if i create if i add one more tax and click on save one more tax tab will be created cgst rates right so in this way we can create n number of taxes in this page so let me remove this for now let me use the default options i will be showing you how to set up this taxes correctly how to set up gst as well indian gst as well so let's save it now for now well it is gone now okay so scroll down and here display prices in the shop so so we have this store website and let us open a shop page so this is our shop page and in this shop page you are able to see some prices right so here are these prices including the tax or it is excluding the tax you can decide from this particular option display prices in the shop excluding tax or including tax we do not want to show taxes in the shop page itself neither we want to show it in the product page we will be showing it in directly in the checkout page so you can select you might want to select excluding the tags well based on your preference you can select including tags as well but it has been generally observed that excluding tax option if you select it attracts more conversion for your store so you can think about it so display prices during the cart and checkout pledge yeah you can show including or excluding let's let's say let's keep it excluding text let's see what happens once we add the text prefix display suffix price displays of xory so here are defined text to show after the product prices this could be ink or vat or to expensive price tags you can simply ignore this on in you can simply ignore this because say the price after price there are price being shown right so here after this price there is a symbol of the currency that we are charging in and then this is the price and decimal rounding up and then we can add third more element that is suffix price display suffix here you can add exclusive tags including tags or something like that if generate is not required so you can you can just neglect that or else if it is required you can add it not a problem and then i don't i don't prefer to add the suffix so i'll not select it display tax totals itemized or a single total it is better to show it itemized so that if you have multiple products in the card it will be clearly distinguishable that what amount of tax is being charged for which item and then rlc if you don't want to make it so long you can just select a single total right i'll show you by selecting both in a few minutes let's save this first this is the general tax options settings right and now let's go to standard rates these are the taxes available and if you can see here there are no taxes configured zero reduced rate also we do not have any tax and in zero rate also we don't have any tax now we will add it so let us go to standard rates now click on insert row select the country code second option is india so i n so if you don't know what is the country code you can simply click on this button and you will be redirected to wikipedia page where you can find your country over here right so i know that india's score is in so let me just just confirm india is iron right so it's iron yeah and now state code again i'm in telangana so it is ts and then zip code if let's say we can add zip code or let's just add wildcard as well you can you can enter as many as zip codes here i'll just add star so that i'm sorry so that it's wildcard every every zip code in telangana state in india will be covered under this city all city rate is let's say 18 percent tax name is gst priority 1 i'll tell you priority one or what is this priority how why when you should use this priority option very soon when i start configuring gst indian gst i'll show you right here in the tax name you need to enter the tax name of the tax right as per the rule government rules and compound or shipping if it is required you can sell enable this one for now it is not required as this is the single tax available here right so now click on save changes so just just make sure that this is not gst this is not how we configure gst this is this is applicable only when we have single tax rate okay so we have to call we when we have to just configure one tax for the store this is how we do it here you can add multiple state as well if you leave blank what happens is if you leave blank all the states will be covered because it's star mark over here so as to seek and all the states will be covered within this country if you leave it blank all the zip codes in this for all the states will be covered similarly all cities so let me save this option now before we test this we need to make sure that this tax rate that has been just now added whose name is gst under standard rates is assigned to a particular product so how to assign the how to assign tax to a product let's go to product first all products we need to say we need to tell woocommerce right so which tax has to be charged for which product and open this product just for some random product and then here if you scroll down here tax status you will be able to see the tax status is it taxable or none no tax has to be charged or else only shipping has to be charged yes it is of course it is taxable and then we have this option called as tax class which tax class should it be billed so so where have we added the tax right now in the standard right so we'll select standard because you know that in under reduced and under zero trade we haven't we don't have any taxes so we have tax under standard rates if you go here under standard rates we have one tax code as gst and so i'll select standard rate now i'll click on update once the product is updated i'll open the product and i'll try to buy that product and see whether the tax is being calculated or not so here it's showing 19 rupees because it is it is not showing the tax because i have opted set up the product in such a way that it is not included i have explored tax here and in further steps we will be seeing the tax go to view now organic hand-picked coffee right so let me delete other product just to avoid confusion from the card okay so now we have this product of 19 rupees one quantity and still i don't see any tax now click on proceed now you can't see any tags here right so what's the error did we forget anything can you see the country and region it is by default it's showing uk so i think shop address is misconfigured so let's go back to general okay so shop address has been configured correctly okay let's go here and change to india we need to tell woocommerce that we the customer is from india right and here we'll add first name last name company name whatever it is treated as down telangana state zip code phone number whatever it is but what is most important is india is selected the country of the customer from where he is ordering and as soon as i select india you can see gst of 18 percent has been applied that is 3.42 calculated based on the product price that is 19 rupees the 18 of the 19 rupees is 3.42 right so this is how tax works now this is how text work and now suppose that in this step what we saw is after creating the tags here we went to the product page and assigned a tax to the particular product what if i don't want to do that do that i want to universally assign standard to all the product universally assigned standard rates to all the product i'll go to tax under tax option shipping tax class standard and i'll select save changes now we have so many products right we haven't uh we haven't yet gone to each product and updated the tax and now let's see what happens here if i add other product some random other product let me take honey let's save this first yeah let's refresh here and now based on my settings i haven't i haven't gone directly to this particular product page and product backend and then i haven't assigned any tags for this particular product but still it will charge standard rates that is 18 percentage let us see if it is being if it is configured correctly or not go to view cart and then just to avoid confusion i can delete this organic hand-picked coffee because that is what we added manually right the tax and here it's fresh organic honey and let's go you can see here that gst of six rupees is applied for this particular product as well even though i haven't gone uh exclusively in this product back-end and i did not assign any tax for this product but still it is charging me six percent gst based on the uh address that i have given that it knows that i am from india i am ordering from india based on that it is calculating gst so this is how tax is configured the product can the tax name can be anything based on your country and state but the rules the configuration rules is same this is how you configure uh tax in woocommerce and in my next video the the this product this video tutorial will be a little bit longer so i'll make it in two parts so in this uh particular video what we saw is how to set up the tax options correctly and how to add taxes in this options that has been given and how to assign tax for a particular product or else universally how to assign the tax and we saw that it is being correctly charging based on the location that we have assigned to charge now the next case is what if we have multiple taxes if we have to charge three to four tax based on the customer's location and what if we have to charge zero percent tax for based on some cuts to customer location so there are some logics and rules and regulations we will see in the next part so stay tuned and if you have any questions till now please let me know in the comment section below and in our next once you complete the next part you will be completely uh aware of how to configure taxes may be simple tax or it is a complex tax you will be completely perfect right thank you very much thank you very much for watching [Music]

Channel: GWiz Academy

Views: 1,572

Keywords: tax, woocommerce tax settings, woocommerce tutorials for beginners, wordpress training for beginners

Id: EKOgBvDmTG8

Length: 23min 19sec (1399 seconds)

Published: Tue Nov 03 2020