Extensions‎ > ‎Tax on Shipping‎ > ‎

Configuration

 
 

Installation


 
Tax on Shipping uses our generic extension installation instructions, found here.
 
It is highly recommended to backup your server files and database before installing this module. No responsibility can be taken for any adverse effects it may cause. It is also recommended you install on a test server initially to carry out your own testing. 
  • Within 'System->Configuration->Tax' you should have a tab called 'WebShopApps Tax On Shipping'

Configuration


  1. Following installation ensure you have refreshed your cache
  2. Go to System > Configuration > Tax > WebShopApps Tax on Shipping
  3. Set Enabled to yes
  4. Select a totalling algorithm for shipping tax (see below for examples of each algorithm)
  5. Save the configuration

 

 

Totalling Algorithms Explained


 

Highest tax rate in the cart

The cart contents and their tax rates are examined. The highest tax rate in the cart is the tax rate used for shipping tax.
 
 
 
In the above example, the highest tax rate in the cart is 19%, so the shipping is taxed at 19% also.
 

Lowest tax rate in the cart

 
Exactly the opposite of above, the lowest tax rate in the cart is used to calculate tax on shipping.
 
 
 
 
In the above example, the lowest tax rate in the cart is 6% so the shipping is taxed at 6% also.
 

Flat tax rate on taxable cart

Use this algorithm if you only are required to tax shipping when there are taxable items in the order. The shipping amount is taxed at a flat rate specified under Tax Classes in your tax configuration. Using this algorithm this flat rate of shipping tax is only applied if there are taxable items in the cart.
 
 
In the example cart above, there aren't any taxable items in the cart so there is no tax applied to shipping
 
 
Once we add a taxable item to the cart (tax rate of 19%), shipping tax is applied at the flat rate for shipping (in this case 10%).
 

Highest value in the cart

 
The cart contents are examined and their tax rates. The value of items in the cart in each tax rate are compared and the tax rate of the group with the highest value is used as the shipping tax rate.
 
 
In the above example, there are $75 of books in the cart (tax rate 6%) and $50 of DVDs in the cart (tax rate 19%) so the tax rate of books is used to calculate shipping tax.
 

Notes on Tax Calculations


  1. Tax on Shipping is compatible with tax exclusive and tax inclusive shipping prices.
  2. Tax calculations can be very complicated in Magento, if you are experiencing issues we recommend you first disable Tax on Shipping and retest your tax calculations to ensure there are not any basic underlying tax issues.
  3. For more information and assistance with Magento tax, please refer to these articles