If you notice an order has not had the appropriate tax applied, go through the following steps to rectify the issue.
No Tax Charged
- Check the state or province that the customer entered for their shipping address. The billing address is not taken into account.
- Navigate to the 'Edit Store' tab -> 'Shopping Cart' -> on the left-hand menu click on 'Taxes'.
- Click on 'Edit' beside the tax for that state.
NOTE: If there isn't any tax listed that applies to the customer's entire country, or for their specific state, you will need to create the tax.
- Ensure that 'Inside' is selected (a dot in the radio button).
- Ensure that the country name is selected (there is a check symbol next to the country in the drop down menu).
- Make sure the state/province is entered. For Oregon, you will need to enter "OR".
Too Much Tax Charged
Too much tax applied to an order indicates that you have more than one tax set up that applies to the customer's country and/or province or state. If you have a tax that applies to an entire country (meaning the state/province field is left blank) with no variation in the rate, then you do not need to setup additional tax rates for specific states or provinces. Any customer entering that country for their shipping address will have the tax applied.
If you have a country-wide tax that needs to be applied but only one province or state needs a higher tax rate, create the country-wide tax rate, then create a tax rate for the specific state or province that is the exception at a rate that is the difference between the two. For example, if Canada needs to be charged 5% tax, but British Columbia needs to be charged 12%, create the BC tax (entered as BC) at a rate of 7% as it would be added on top of the 5% Canada tax to equal 12% total.