Automatic tax application on the sales

[Tashi]

How do we set up automatic tax added on the items? In other words, once I add items, the tax says it is included but the total is just the sum of the item costs and the tax is not applied. Please help.

[HC_Charlie]

Hello @Tashi and thanks for your question. Find more about taxes here.

It looks like you have two options: You can choose to Add Tax to Item Price, which adds the tax as a separate line item to the price or Include tax in item price, which shows one amount – the combined sales tax and item price. Maybe you have to adjust your settings in this area.

I hope this answers your question.

[Tashi]

Thanks for your reply Charlie. I couldn’t yet figure out. I want to just have my items selected during check out and the tax applied automatically. However, this doesn’t happen as of now. I tried your method though. For instance, my items cost $50 and $20. I have tax of 1.9%. During checkout of these two items, the total amount to be charged is $70. I want the tax 1.9% to be applied on the $70 automatically. I hope you can help me now.

[Arie]

Hi @Tashi,

Thanks for writing in and welcome to the Seller Community!

Please take a look at your tax settings here and double check that Include tax in item price is turned off. Like this, the tax amount would be added to the total, instead of being included in the price of the item. 

Please let us know how you go!

[Tashi]

This helped. Thanks Arie.