Most sales taxes are owed where the goods go, not where the buyer happens to be when they click Pay. A customer in Germany ordering a gift for someone in France is a French sale. This guide walks through setting up tax rules in PrizeX, BidKing and RaffKing so each order is taxed by the country it's delivered to: how the country is chosen, how to add your rules, what buyers see, and the limits worth knowing. For the bigger picture on currency and coins, see our guide to selling internationally.
Who has it
- Tax is worked out by the core, so every edition charges the rules you set.
- The Tax Settings screen that manages the rules is included in PrizeX, BidKing Plus, BidKing Pro and RaffKing. For BidKing Starter it's an add-on.
Which country an order is taxed in
- The delivery address. An order with a delivery address is taxed by that address's country.
- A saved billing address, for a wallet top-up or an item with no delivery.
- Where the buyer is. Otherwise, the country from your CDN's country header, or a lookup of the buyer's IP address.
- The United States, as a last resort. When none of these can be told, the buyer counts as being in the US.
Your store's own country is never used. If you have no US rules, that last step means no tax is added, so check how often it happens before you rely on it.
Setting up your rules
- Open Pricing > Tax Settings and go to the "Tax rules" tab.
- Review the sample rules. A fresh install adds a few examples, all switched off. Edit and switch on the ones that apply to you, and delete the rest.
- Add a rule for each tax you charge. Pick the country, give it a name for the receipt such as VAT or GST, set the rate, and choose whether it's charged on shop orders or wallet top-ups.
- Switch it on. A rule that's off is kept but nobody is charged it.
- Test it. Add an item to your cart, pick delivery addresses in different countries, and check the tax line changes.
Use GB, not UK
The country code for the United Kingdom is GB. The rule form picks the country from a list, and a code like UK is refused with a hint to use United Kingdom (GB). If an older rule was saved as UK, the screen warns that it's never charged. Buyer addresses entered as UK are read as GB, so they match a GB rule.
Rules add together
Every rule that's on for a buyer's country is added, each on the price before tax. An 11% rule and a 9% rule charge 20%. The order on the receipt only changes the listing, not the amount.
What buyers see
- A line for each tax in the cart, such as "GST (18%)".
- It updates with the address. When the buyer picks another delivery address, the tax lines change straight away.
- The same breakdown appears on the payment page and the order page, and on invoices if you use Shop Operations.
- Prices are shown before tax. The cart says tax for the buyer's location is added to the total.
What's taxed
- Shop orders, with "Shop orders" rules: products, auction Buy Now purchases, prizes claimed through the cart and agreed B2B quotes. Tax is worked out after discounts and coupons.
- Wallet top-ups, only if you add "Wallet top-ups" rules.
- Not taxed: shipping, and anything priced in coins, such as lottery tickets and bids. Only the top-up that bought those coins can be taxed.
What it doesn't do
- different rates for states or regions within a country;
- prices that include tax;
- tax on shipping;
- different rates or exemptions per product;
- buyer VAT numbers or reverse charge;
- a tax report. The Shop Operations orders export has a tax column.
If you need any of these, for example US state sales tax, plan for it with your accountant before launch.
Getting it right
Where you must register, which rate applies and what counts as a taxable sale depend on what you sell and where. We can't give tax advice, and this guide isn't any. Check with an accountant who knows the countries you sell to before you set your rules.
Common questions
Is tax charged by the buyer's location or the delivery address?
By the delivery address, for any order that has one. A wallet top-up or an item with no delivery uses a saved billing address, else where the buyer is.
Why isn't my UK rule charged?
UK isn't a country code. Pick United Kingdom (GB) instead; the Tax Settings screen flags any rule saved as UK.
Does the tax change if the buyer picks another address?
Yes. The cart's tax lines update straight away for the new address's country.
Can I set different rates for US states?
No. Rules are by country only.