What is a tax rate?
A tax rate refers to the percentage of a customer's purchase that must be paid to the government as a form of taxation. Tax rates are assigned to a product or groups of products and orders for calculations.
These tax rates are usually added to the total cost of the purchase, which then remits the funds to the appropriate government entity.
Merchants may apply tax rates based on the country.
Uvodo makes it easy for merchants to create and manage tax rates for their eCommerce store. By setting up tax rates, you can ensure that your customers are charged the correct amount of tax for their orders, while also remaining in compliance with local and national tax regulations.
❗️Note: if no tax rate created for a product, customers won't be able to complete the checkout.
How to create a tax rate?
Navigate to the Settings → Taxes section of your dashboard.
Click "Create tax rate" to begin setting up a new tax rate.
Name the tax rate which will appear on the checkout page.
Then, select the country for which you want to create a tax rate.
Enter the tax rate for the country. This should be a percentage that will be added to the total cost of the customer's order.
Click "Save" to create the tax rate.
Once you've set up your tax rates, Uvodo will automatically calculate the appropriate tax amount for each customer order based on their location and the tax rules you've set up. This ensures that your customers are charged the correct tax amount, and that you are in compliance with tax regulations for the countries where you do business.
❗️Note: Uvodo is not responsible for filing or submitting your sales taxes on your behalf.