Taxes

Each product in LemonStand must have a tax class assigned in order to be sold.

Tax Classes can be managed under Business Settings > Taxes.


What is a Tax Class?

A tax class is a set of rules which LemonStand uses to calculate tax amounts for a specific product. By using tax classes, you can define tax rates for a specific location - country, state, or if it is needed - for a specific ZIP code or city.

What is a Compound Tax?

Compound taxes are also known as stacked taxes. When applying a compound tax to a location, the total cost of a product or service is taxed at one rate, and then the total of that amount, including the first tax amount, is taxed a second time. If two tax rules with the same priority apply then the taxes are added together. If two taxes with a different priority apply then the taxes are compounded. When taxes are compounded, the first priority tax is calculated on the subtotal amount, and then the second priority tax is calculated on the subtotal plus the first priority tax amount. Lower numbers have higher priority.

For more information on Managing Taxes and Tax Class .CSV Imports, check out our Tutorial.


Managing Tax Classes

You can manage Tax Classes on the Business Settings > Taxes page. 


To manage tax classes manually for your store, click a tax class you want to edit, or create a new tax class. On the Rates tab you can define taxes for different locations using the following columns:


Country Code - code of a country a tax is active for. You can specify a valid 2 letter country code, or enter the * (asterisk) symbol for "any country" condition.

State Code - code of a country state a tax is active for. A value should be a valid state code for a country specified in the first column. Also you can specify the * (asterisk) symbol for "any state" condition.

ZIP - ZIP code a tax is active for. You can leave this field empty if you want a tax to be active for any ZIP code within the specified country and state.

City - name of a city a tax is active for. You can leave this field empty if you want a tax to be active for any city the specified country and state.

Rate - tax rate is used as a percentage. To calculate a real tax amount, LemonStand uses the following equation: tax amount = subtotal * tax_rate/100.

Priority - tax class priority. This column allows you to apply up to 2 taxes to the same location. If you do not need to have multiple taxes, specify 1 for all rows in this column.

Tax name - tax name, for example GST, or VAT. Do not use a same tax name for different taxes. Please remember that you should specify valid tax names in the Tax Name column.

Compound - indicates that a tax rate should be compound (stacked). Please read How To Manage Multiple Tax Rates below.

Managing Compound and Multiple Tax Rates

You can create up to 2 tax rates for the same location. When you do this, you must specify a priority for which tax will be applied in which order, with the lower number being applied first. By checking the compound checkbox you can create a compound tax rate that will be applied to the subtotal of cart, including the primary tax rate already applied.

Example of 2 tax rates for the same location that don’t compound:


Product 1

$50


Product 2

$50


Subtotal

$100





Tax 1

5%

Subtotal * 5%

Tax 2

7%

Subtotal * 10%

Total Taxes

15%





Subtotal

$100


Total Taxes

15%


Grand Total

$115


Example of 2 tax rates that do compound:


Product 1

$50


Product 2

$50


Subtotal

$100





Tax 1

$5

Subtotal * 5%

Tax 2

$10.50

(Subtotal + $5) * 10%

Total Taxes

$15.50





Subtotal

$100


Total Taxes

$15.50


Grand Total

$115.50


Tax Class Rate .CSV Import

LemonStand offers the ability to import Tax Class rates via a CSV file, which allows you to import multiple rates for a specified Tax Class.


Supported and Required Columns

Parameter Type Required
Tax Name tax_name Required

Rate rate Required
Country Code country_code Required

State Code state_code Required

Priority priority Required

Postal Code postal_code Not Required

City city Not Required

Compound is_compound Not Required

Sorting Order sort_order Not Required

For boolean columns ('is_compound'), the following values will be considered as true:

  • 1
  • yes
  • y
  • true
  • enabled
  • active

Tax Class Rates CSV Import

To import a Tax Class Rate CSV into LemonStand, navigate to the Business Settings > Taxes page. Click on the Import Tax Class Rates button, as seen below:

Clicking on the Import Tax Class Rates button will take you to the Tax Class Rate CSV Import page:

From here, you'll upload your CSV and select an existing tax class to apply the rates to. See Resources for a sample CSV.

Resources

Sample CSV:
tax-rate-csv.csv