Tax Configuration
Configuring Taxes
Cartly supports flexible tax configuration to handle different tax requirements across regions.
Tax Rates
Navigate to Settings ā Taxes to configure tax rates. Each tax rate specifies:
- Name ā A label for the tax (e.g., "Sales Tax", "VAT", "GST")
- Rate ā The percentage to apply (e.g., 10.0 for 10%)
- Country ā The country where this rate applies
- State/Province ā Optionally restrict to a specific state or province
- Priority ā When multiple rates apply, priority determines the order of calculation
Tax-Inclusive vs. Tax-Exclusive
Cartly supports both pricing models:
- Tax-exclusive ā Prices shown to customers do not include tax. Tax is calculated and added at checkout. Common in the US and Canada.
- Tax-inclusive ā Prices shown already include tax. The tax portion is extracted at checkout for reporting. Common in the EU, UK, and Australia.
Set your preference in Settings ā Taxes. This applies store-wide.
Tax Calculation
During checkout, Cartly determines the applicable tax rate based on the customer's shipping address. The tax rate for the matching country (and optionally state) is applied to the taxable items in the order. Shipping costs can be configured as taxable or non-taxable.
Tax-Exempt Products
Some products may be tax-exempt (e.g., certain food items, clothing in some jurisdictions). You can mark individual products as tax-exempt on the product edit page. Tax-exempt products are excluded from tax calculations.
Tax Reporting
Cartly tracks tax collected on every order. View tax reports in the admin analytics section to see total tax collected by rate, by country, and by time period. This data is essential for filing tax returns with your local tax authority.
Tax on International Orders
When selling internationally, different tax rates may apply based on the customer's country. Create tax rates for each country you sell to. Cartly automatically applies the correct rate based on the shipping destination.
Important Notice
Tax regulations vary by jurisdiction and change frequently. Cartly provides the tools to configure and collect taxes, but you are responsible for determining the correct tax rates and filing requirements for your business. Consult a tax professional for specific advice.