Taxes and Woocommerce
Published on April 3, 2020
Published on Wealthy Affiliate — a platform for building real online businesses with modern training and AI.
Calculating the correct tax to be paid on Woocommerce
It should not have been this hard. Though perhaps I am my own worst enemy, but here is the story.
The Problem
I had set up Woocommerce to include tax in the price for my products. I do this as the majority of sales are here in Thailand and I have to pay 7% GST to the government.
The Issue
So every time I opened up Chrome and went to my website the prices are listed as whole numbers and the tax is in the selling price. All good, right.
Well it turns out that it was not. Note: Prices are in Thai Baht - 1 USD = ~32 THB
When opened in another browser the prices would not display the tax included.
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I was confused the prices were included in my Chrome browser. Why was it different in any other browser? So I logged into WA and went to WC settings and checked the setting for tax were all set to inclusive as well. Also, when I then refreshed the website -the prices all changed to the correct amounts.
But, if I shut down the browser and then reopened the website - we were back to no tax included in the price. Also, if I shut down Chrome and just opened the website, without going through the back office - no tax.
The website was supposed to look like this.
Frustration mounting at this point
Why would the taxes be left out of the calculation? I could not understand it and I was worried as we were doing a big social media push this week and I wanted the website to work.
I chenged the settings to exclude tax - and that worked for the prioces, but not my tax invoices that I need for the government.
The Solution
I Googled and read numerous pages and posts about this and eventually found the solution.
What is this you may ask?
Well it turns out the setting that you need is the location of the store.
That was the secret - base the tax on the address of the shop not the customer shipping address.
I assumed that because my customers were here in Thailand I would calculate tax based on their address.
It took me most of a day to figure this out and then most of another day to get my shipping sorted out properly.....but that is another story.
Hopefully this will solve a problem for someone who is looking for an answer to woocommerce tax
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