Calculate tax based on Shop Base Address VS Customer Shipping Address

  • Resolved marelise

    (@marelise)


    2 years, 7 months ago

    The WooCommerce and other documentation I can find on setting up tax rates show the default setting of Calculating tax based on Customer Shipping Address.

    What is the implication if that setting is changed to Calculate based on Shop Base Address?
    It’s my assumption that in this case, I should configure the Standard Rate to be whatever is relevant in the country where the shop is based (e.g. South Africa’s standard rate = 14%, so this is what I configure as the Standard Rate). In other words, WooCommerce doesn’t “know” what the relevant tax would be, without this standard tax rate configuration?

    If I set the tax to Calculate based on Customer Shipping Address, and the shop ships to various countries, then my assumption is that I should set up a Standard Rate for every country that the shop ships to.

    Is this correct?

Viewing 1 replies (of 1 total)
  • Plugin Support Sandip Mondal – a11n

    (@sandipmondal)

    Hi @marelise,

    What is the implication if that setting is changed to Calculate based on Shop Base Address?

    It’s my assumption that in this case, I should configure the Standard Rate to be whatever is relevant in the country where the shop is based (e.g. South Africa’s standard rate = 14%, so this is what I configure as the Standard Rate). In other words, WooCommerce doesn’t “know” what the relevant tax would be, without this standard tax rate configuration?

    Yes, that’s correct!

    If you set the “Calculate tax based on” to “Shop base address” then tax will be calculated based on the state and country you have under WooCommerce > Settings > General and the tax rates you have set for this state under WooCommerce > Settings > Tax

    If I set the tax to Calculate based on Customer Shipping Address, and the shop ships to various countries, then my assumption is that I should set up a Standard Rate for every country that the shop ships to.

    Yes! Setting it to Customer Shipping Address means the tax rate will be calculated based on the address customer enters on the cart/checkout page and the corresponding tax rates you have set up under WooCommerce > Settings > Tax.

    You can learn more about setting up taxes in WooCommerce in this document.

Viewing 1 replies (of 1 total)
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