Applying Taxes to Shipping Cost
You can set up a shipping method so that tax can be applied to the shipping cost.
To enable taxes on shipping fees:
- Hover over the Modules tab in the top navigation bar. In the fly out menu, click Administration. The Administration/Overview page will appear.
- Expand the Shipping group item.
- Click Add Shipping.
- On the Set Up Items page, click Set Up Shipping.
- To add a Shipping Method, in the left navigation panel, click Add.
- On the Shipping Method Information page, click the Taxable check box to tax the shipping costs.
Note that, on the Priority Shipping Method profile, it shows Taxable, Yes.
When this shipping method is selected during Shopping Cart (or Online Store) check out, the shipping costs will be taxed.
The Payment Information page shows that the shipping tax has been added to the regular tax for the merchandise.
