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How to Set up Tax rates & Exclude or Hide Tax Calculations based user role in WooCommerce?

Planning to set up tax rates or extend the application of the same to hide or exclude calculations depending upon the user role?

In this tutorial, we are going to use the elex Catalog Mode Wholesale Pricing Role-Based Plugin. You may purchase the plugin by visiting the official site here. Click Here.

The elex Catalog Mode Wholesale Pricing Role-Based Plugin is one of the popularly used tax plugins for WooCommerce. It undertakes the user role as one of the parameters when setting up taxes in the WooCommerce store. Also, the plugin allows you to make changes to four important tax settings in the WooCommerce store:

  • Additional Tax Classes
  • Display Prices in the Shop
  • Display Prices During Cart and Checkout
  • Price Display Suffix

Not sure how to edit or modify them? This article will help you understand how to change the above to improve your store functionality.

Once you have the plugin downloaded within the store, install and activate the same. Move to the WooCommerce admin dashboard and then click on settings. Here, click on taxes. Under the section that says prices entered with tax, select on the radio button that is to enter the prices exclusive of taxes.

  • First, let us configure how the product prices will be entered.

Now that we have selected the option, the next thing to do is set the above to function effectively in the store. To do so, we would need to create a new tax class and configure the same.

    • In the field of Additional Tax Classes, enter a new tax class name. Let’s say we add a new tax class with the name MyTaxClass. Remember that the field allows a single tax class per field.

    • Next, we adjust the manner in which the price is displayed on the shop page. If you wish to display the product price inclusive of taxes, select including the tax. If not, select excluding tax.

  • Thirdly, we have the section that specifies whether to display the price including taxes or excluding taxes on the cart page and the checkout page. Since we chose the option of excluding tax, here again, we need to select the option of excluding tax from the drop-down.

Move down the page and click on save settings. Once done, you will see a new link at the top of the page with the name of the tax class that you just created.

The next thing that we need to do is configure the tax class to act accordingly. Click on the link that appeared at the top. Since this is a new class, you will not have any rows within the page. Click on the add row to get started.

Once you add a row, you will find several fields with blank spaces. Enter the values as you want them to be or to put it this way, as per your tax rule

  1. Country Code – This is the country to which you wish to apply the tax rate or the rule. Enter the two-digit country code for the same. In case you wish to make the rule Universal, simply leave the space blank.
  2. State Code – This is the state to which you wish to apply the tax rate or the rule. Enter the two-digit state code for the same. In case you wish to make the rule Universal, simply leave the space blank.
  3. ZIP/Postcode – Enter the zipcodes of the region within the state for which the rules apply. Separate two or more zip codes with a semicolon.
  4. City – Enter the city within the state for which the rules apply. Separate two or more cities with a semicolon.
  5. Rate % – Specify the tax percentage up to 4 decimal places.
  6. Tax Name – Enter a custom name for the tax created.
  7. Priority – Set priorities for the different tax rates.
  8. Compound – Check this option if you want this rate to take over others.
  9. Shipping – To apply the tax rate on the shipping rates, select the checkbox.

Make sure you click on save changes to reflect the same within the store.

Configuring Tax Options in WooCommerce Role-Based Pricing plugin

Now that we know how to create a tax class and configure the same to set rates, the next thing to do is to set the option based on the user role. Assuming that you already have the plugin downloaded and installed within your WooCommerce store, move to the tax settings option in the plugin. Click on WooCommerce -> Pricing and Discount tab.

Now move down to the Tax options settings.

    • The first thing to do is – enable the tax option. Click on the checkbox to do the same.

  • As soon as you click on it, you will see a tax option displayed below:

As you can see from the above image, the table has three major columns.

  • User Role: The user role can be anything from a Dealer to the Administrator, Wholesaler to the Manager, Editor, and the Member. In this field, what you need to do is select a particular user role. To set priorities when setting taxes, simply drag the icon and drop the same in the ideal position. The user who is listed on the top will have the highest priority.
  • Tax Class: The next column is about the tax class. Here we need to specify the tax class applicable for a certain user role. Say, you want the MyTaxClass to be applied for the Dealers. So, under the dealer’s tax class, select MyTaxClass. Click on the drop-down and select the appropriate tax class.

  • Tax Type: The third column is about the tax type. Whether you want to keep it default or change it to display the same without the tax, you can click on the drop-down and select the appropriate option. In case you remember, the conventional WooCommerce settings also have the provision. What makes this unique is that changing here will override all other selections made by you.

Example of setting a tax rate based on user role

Let’s run down an example to understand how to set tax rates depending upon the user role. Here, we take that for the wholesaler, the tax class should be MyTaxClass and the tax type must show the price excluding tax in the shop.

Wholesaler:

We already have the MyTaxClass tax class created. To set this for the wholesaler. Move to the tax setting option of the plugin.

  • Under the user role, select Wholesaler.
  • Next, click on the drop-down of the tax class and select MyTaxClass.
  • Lastly, select the option of show price excluding tax in the shop. Click on the save button to implement the changes and you are done.

The Final Word

Using this quick tutorial, you must have learned how to set up taxes for your WooCommerce store, how to exclude or hide it from the tax calculation as per user roles. If confused, it is any day better to hire WooCommerce support professionals to do the job. Alternatively, you may tell us your concern in the comment box below.

How to Add Additional Tax Classes and Custom Tax Rules in WooCommerce

Running a WooCommerce store, you must be worried about the tax rules to be applied to the store. You aren’t always doing business with people within a particular city or a state or a country. Your customers can be from two blocks next to your store, or someone miles away from the city. It is important that the tax rules you apply adhere to all factors, starting with the state to a product, and quantity of the product.

In case you aren’t sure how to add additional tax rules or custom-fit tax classes within your online store, the article will help you with the same. And if you want immediate expert help instead of learning the process, reach out to WPCustomify.

Understanding Tax Classes

To begin with, let’s see what exactly we mean by tax classes and what they are used for. Let’s assume that currently, your store has the option of automated taxes enabled. What this does is that it automates the process of tax calculation and will be added to the checkout page without any hassle.

Sounds good, right?

Now if at any point in time you wish to customize the tax rates or basically target rates based on the geographical location, you would need to modify the settings. This is where the idea of tax classes come into play. Tax classes are specific tax is assigned to the cart depending on the region. For instance, a customer from New York will have a different tax rate as compared to a customer from Chicago.

An easy way out here is to add locations in a spreadsheet and upload the same to the WooCommerce store. This will help you determine and set tax rates for each of them. As it appears to be, specifying tax rates or creating different tax classes is an arduous job and you might feel the need to have a tax professional take over the job.

Well, you can simply consult your tax department to look over the rates. Once you are through, you can then go ahead with adding tax classes within the online store.

Adding A Tax Class

Follow the steps given below to create a new tax class and add it to your WooCommerce store.

Start with logging in to the WooCommerce store and move down the dashboard.

  • Hover around the dashboard and on the left side of the same, click on Settings.
  • The page that opens will have multiple options. Since we are to create a new tax class, click on the Tax tab.
  • Move down the page to the section that says, Additional tax classes.
  • You will find two names already listed there. Remember that you can have only one tax class per line. So move down to the third line and type the name of the tax class that you wish to add and configure for the WooCommerce store.
  • Once you are done with typing the name of the tax class, make sure you hit on the Save changes tab.

Simple as it may sound, we have now added a new tax class to the WooCommerce store. The next step is to configure the same or customize it as per your likes. Move to the top, and click on the link of the tax class that we just defined.

If we assume that the created was named Class A Tax, you will find a link at the top with the same

The page will have a few fields that you need to fill in to configure the tax class and set it for your online store.

Note that you can always modify the settings of the store to determine whether or not the shopping page displays the tax applied.

Display Prices During Cart and Checkout

Similar to the above, you can also decide whether you have the taxes displayed on the checkout page or you omit it. This accounts for the two names, including tax and excluding tax.

Let’s understand this through an example. The two images given below will shed light on what looks like the tax-inclusive price and the ones without taxes.

If you see, the image above has the price printed just adjacent to the total tag. Below, we have a text that says includes tax. This means that the final price displayed has a tax amount added to it.

On the other hand, this image has two separate rows. One specifies the tax amount and the other lists the total. Note that the total doesn’t have the tax amount added. This is tax exclusion from the price.

Price Display Suffix

Similar to the option of whether you want to display the tax or not, we have something called, display suffix. Let’s assume that you plan to have the amount displayed on the product page. With the price display suffix, you can have a customized text displayed adjacent to the amount.

The image here clearly specifies the total amount of the product at $3. Just beside we have a text that says inclusive of taxes. You can similarly modify the settings to omit the suffix and display only the product price.

Display Tax Totals

Lastly, we have the option to Display Tax Totals on the checkout page. What this does is helps you specify if you need to display the final amount as a whole or say the total tax amount as one or list them separately. Click on the drop-down to select the same.

Click on the Save changes button to finally implement the same.

How to set up tax rates?

Now that you are well aware of the modifications that can be done with respect to tax rates on the WooCommerce store, let’s move to the part where we discuss how to set up a tax rate.

Considering that you are under the tax column of the settings tab, you will find all of the tax class names displayed. Click on the one that you wish to customize.

Note that you can also edit an already existing and configured tax class as and when needed.

Once you click on the tax class, select insert row. As evident, there are several columns. We go through them one after the other to configure the class.

Country Code – The first one is the country code. If you wish to apply the tax rule to a specific country, enter the code. Leave blank (*) to apply the rule to all countries.

State Code – Next to the country code, we have the state code. Similar to the above, simply type in the two-digit state code. If the rule applies to all states in the country, leave the space blank.

ZIP/Postcode – The next field is zip/postcode specific to the tax region. Now, it is possible that there are multiple postal codes. Hence, what you can do is enter the codes and separate them with a semicolon. Resort to wild characters to enter codes within a range or all with the same initials.

City – The fourth one is the city where the tax rate applies. Similar to the postcode, enter the name of the cities and separate them using a semicolon. If the tax rule applies to all, leave the same blank.

Rate % – Enter the rate with four decimal places. For example, if the tax rate is 7%, enter 7.0000.

Tax Name – Enter the name of the tax that will be displayed on the shopping page or the product page.

Priority – Now we set the priority of the tax rates. If there are one or more rates that apply to the same checkout, you would need to specify which rule would outnumber the others.

Compound – In case you wish to have the current tax rate to superimpose on the others, you can select the checkbox here.

Shipping –Another thing to note is where you want the tax rate to be applied to the shipping charges as well. If yes, you can select the checkbox or leave it as it is to omit the same.

Rerun the settings and then click on the save changes button. You are now done with creating custom-fit tax rates for your WooCommerce store.

Tax Rate Example

Let’s assume that you wish to set a tax rate for all the customers in New York. So what we do is,

  • Move to the online store admin page.
  • Click on settings and then select tax.
  • Here, under the option of tax rates, enter the name of the class as NYTax.
  • Now, click on save changes.
  • Next, move to the top and click on the name of the newly created tax class.

Now we need to configure the tax class as seen above in order to implement the same.

  • Moving from left to right, we begin adding the information.
  • Enter the name of the country like the US.
  • In the next field, enter NY.
  • Since we apply the tax rate to all of the zip codes in New York, we leave that section blank.
  • We also leave the city column empty.
  • Next, we need to enter the tax rate. Let’s say we want the tax to be 7.5%. So the input here would be 7500.
  • Enter the tax name as standard.
  • Set the priority of the tax rate as 1 since we want it to apply no matter what.
  • Let’s assume that we want the rate to apply over all other rates for New York, we select the compound option.
  • In case you wish to apply the tax rate on the shipping charges as well, click on the checkbox.

Click on save changes to finally have the rate live on your WooCommerce store.

The Final Word

Adhering to tax rules and handling tax starting from the WooCommerce cart level minimize the additional work for the businesses later. While it may look like a complex task to set up additional tax classes in the beginning, this small step is going to simplify your business life in the long-term. So, make sure that you digitize taxes for your e-commerce business.