The Pricing step of a product configuration wizard lets you turn on sales tax and define who will be charged tax. Choose whether you will charge sales tax to everyone, regardless of their tax status, or if tax will be removed for registered business customers who provide a tax identification number.
Tax rates such as state/federal or VAT are manually defined by region in the sales tax configuration for your account.
Important
Sales and use tax, value-added tax, and other similar tax collection and remittance is always the sole responsibility of the merchant selling a product. Kartra does not validate buyer tax identification, or provide advanced auditing and post-purchase tax collection tools.
If you are not sure whether you need to turn tax collection on for your products, please consult with a tax professional or your local tax authority.
Apply tax to everyone
Select this option to apply sales tax to every transaction, regardless of the buyer’s tax status. The rate of tax is defined by region in the Sales tax dashboard.
Pro tip
Add the Sales Tax ID field to your checkout form if you want to collect tax identification in this mode. If tax is set to be charged to everyone, the buyer will pay applicable tax even if they provide an identification number.
Remove tax with tax ID
Select this option to let registered businesses enter a sales tax identification number (such as VAT, GST, or other registration ID) in the checkout process and suppress sales tax. Tax will only be charged to people who do not provide a valid tax ID in this scenario.
If selected, the following mandatory fields are added to the checkout form:
- Ratio choice for Business vs Individual declaration
- Text input for Sales Tax ID
If the buyer ticks, “I’m a registered business,” in the checkout form, a Sales Tax ID field appears (shown in the previous image).
The customer must enter an ID number to remove tax (where applicable) from the checkout total and complete the purchase.
Important
Validation is not performed on the Sales Tax ID number. Kartra cannot confirm whether the entry is valid or correct.
If you turn this option on, make sure you audit the data collected to ensure that a customer who claims business status has provided the appropriate tax identification number.