How are tax rates calculated for catalogue items?
When you enter the price for a product, you then enter the percentage of that price that will be tax. The original price you entered won’t change, but will include the tax percentage you’ve chosen.
In other words, you enter the price first, and the tax percentage second, but entering the tax percentage doesn’t change the price, it just determines what percentage of the price will be tax. Here’s an example:
- You create a product
- Add price of EUR 120
- Select 20% tax
- The product price is still EUR 120, but 20% of that price (EUR 24) will now be treated as tax
Responsibility for tax compliance
You're responsible for defining tax rates and adhering to any tax legislation applicable to your business.