Setting Up Free Tax (But Recording It)?

Hi @theronin42,

I may not understand your question entirely here, so let me try to restate it to confirm we’re working towards the same thing. ??

First, are you saying that customers shouldn’t realize they are paying tax but you still want to collect tax on purchases? If that is the case, you are correct that you’ll want to setup taxes to use the “Yes, I will enter prices inclusive of tax” setting under the Tax tab.

I do think that’s the best way to collect sales tax, but make it less noticeable by your customers. That will still include taxes in reports and whatnot for any sort of recording/reporting purposes.

Thank you for the response, ryanr14.

NO. Absolutely not. That would be such a cheap tactic in my opinion. What I mean is the true product price is $10. When I charged tax of 10%, the total price is $11. I want to NOT charge that 10% but I want it recorded somewhere (invoice, some report, anything) that ties that invoice to the 10% that was not charged. This was, when it comes to pay tax, I already have a record of what I need to pay and be able to tie it to invoices.

What I have done in the meantime is to just mark all products “Non Taxable” and I just plan to calculate the tax manually every end of the month for EACH sale. That is very tiring.

Hi @theronin42,

Thanks for the clarity here, and I apologize as I didn’t mean to imply or say you were trying to do anything underhanded. ??

I’m not sure there is a way to specifically show that there was no sales tax collected on an order, besides not charging tax and not having the tax line on your orders/invoices. Have you used any of the reporting features in WooCommerce yet to help with your tax calculations?

If I understand things correctly, you aren’t charging your customers sales tax and thus should just disable taxes in WooCommerce. Then at the end of each month you need to know your earnings to calculate what you’ll owe the government in taxes. I’m likely misunderstanding again, but if this were the case I would use the monthly report options in WooCommerce. That can give you one total, instead of calculating things for each order.

We haven’t heard back from you in a while, so I’m going to mark this as resolved – if you have any further questions, you can start a new thread.