5. Testing tax rates

Note: until you have activated your Online Merchant Account, no recurring Autoship Orders will be created. However, you can still test the functionality of creating Tax Rates for Scheduled Orders.

Autoship Cloud Tax rates help give customers an approximate calculation of the tax to be applied by WooCommerce. However:

  • Tax Rates entered into Autoship Cloud > Tax Rates are displayed on Scheduled Orders but are not able to be applied to WooCommerce Orders.
  • When an Autoship Scheduled Order processes to create an Order via the WooCommerce REST API, the Tax Rates are applied by your WooCommerce Tax settings (or a 3rd party plugin like Avatax or TaxJar)* when the Order is initially created.
  •  If no tax rates are entered into Autoship Cloud > Tax Rates, customers will see a “TBD” value displayed and taxes will still be calculated and applied when their Scheduled Order processes.

*If you are using or are interested in a 3rd party tax software plugin, it would be a good idea to ask the author how they handle taxes for orders created over the WooCommerce REST API. 

To see where tax is applied when a Scheduled Order is made, see our help doc: How an Autoship Order is Processed under the heading "How Processing Works".

Testing a Tax Rate for Scheduled Orders

  1. In your Wordpress Admin, navigate to Autoship > Tax Rates
  2. Click the add button (displayed as “ + “ ) to create a new Tax Rate
  3. Fill in the fields that apply to your Store:
    1. Name (OPTIONAL): Enter a name to describe the tax rate (example: TX State Sales Tax)
    2. Tax Class (OPTIONAL): If you use tax classes in WooCommerce, you can enter the name of that class here
    3. Shipping Address (OPTIONAL): You can enter as many values to identify who should be charged Tax based on the customer’s shipping address
      1. Example: charge 6.25% to customers with a shipping address in Texas:
        1. Country: United States
        2. State: TX
        3. Rate: 0.0625
      2. Example: charge 8.25% to customers with a shipping address in Austin, Texas:
        1. Country: United States
        2. State: TX
        3. City: Austin
        4. Rate: 0.0825
  4. After setting up taxes, visit your WooCommerce store as a customer and complete a checkout with 1 or more products scheduled for a future order.
    • Note: you will likely want to complete your checkout using a shipping address that would be taxable (for example: a shipping address in Texas if you have set up a tax rate for State: TX)
  5. Visit the “Scheduled Orders” page within My Account to confirm that the tax rate setup in Autoship is displayed on each Scheduled Order
  6. In your Wordpress Admin, navigate to Autoship > Scheduled Orders and edit the order you placed as a customer to confirm that the rate you created is applied correctly.

Products with Tax Classes

If you have assigned tax classes to your WooCommerce Products  you must create separate tax rates for your product tax classes!

The tax class entered into Autoship Cloud > Tax Rates should match the "slug" of the corresponding Tax Class in WooCommerce.

Examples:

  • "Reduced Rate" tax class, will usually have a 'slug' of "reduced-rate" so your Autoship Cloud Tax Rate would use a class of: reduced-rate
  • "Zero Rate" tax class, will usually have a 'slug' of "zero-rate" so your Autoship Cloud Tax Rate would use a class of: zero-rate

Learn more about WooCommerce Tax Rates and Tax Classes here.

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