Tax Groups are useful in setting up sets of taxes so they may be applied to freight and customers appropriately in the accounting software.

Create Tax Groups which define which tax rates are applicable to customers in given group. The Tax Shipping flag signifies which tax group should be applied to shipping for billing purposes. Only one group may be designated for shipping at a time.

For example, lets say we have two taxes. We have a Good’s and Services Tax (GST) and a State/Provincial Sales Tax (PST/SRB). Local customers are charged both taxes. Out of state/province customers, or those with special PST exemption, are only charged GST. International/out of country customers pay no taxes. Freight, on the other hand, can only be charged GST as it is exempt from our state/provincial tax.

Group Name                   Taxes Include                   Tax Shipping
GST & PST                         GST & PST                           No
PST Exempt                      GST                                      Yes
Tax Exempt                      N/A                                       No

Tips and Tricks

Tax Groups are not accessible by default, even by the super-admin. In order to enable it, you must go to Access Setup under the Setup tab, select the user group you wish to change and tick the box corresponding to Tax Groups. In order for this change to take effect, you must log out and log back in.