Using "Apply the tax to shipping" option when you need to setup a separate tax that only applies to the shipping cost
- Open your shop in ShopFactory
- Click Central dropdown button -> Taxes
- Untick "Apply tax on products to Shipping and Handling Charges" checkbox
- Click the + button to Add a new Shipping Tax.
a) Enter the Tax name for your Shipping Tax i.e. IVA Spedizione
b) Enter the Tax Rate i.e. 22%
c) Click on the box "apply the tax to shipping"
d) where does the tax apply? Select the appropriate region where the tax applies
e) Click the Next button
Note: If you select "Other region" to the option "Where does the tax apply?" - in the next window you must choose the region where the tax applies.
- Then Click the Next button.
- At the Final Tax setup dialog, you can untick "Prices include this tax" if tax will be added on top of the shipping cost
- You can also untick "Allow customers with Sales Tax exemptions to remove sales tax from charges" if you don't want the tax exemption to be available in your shop.
- Click the Finish button.
You are redirected back to the main Tax dialog box:
- Click the Ok button to save your changes.
- You have now setup a shipping tax that applies at checkout to the tax regions you selected during setup.
In the Checkout it will display as tax applying to Shipping only.
