Configure Taxes the Right Way

Taxes can be complicated, but setting them up in ilanoShop is straightforward. Proper configuration ensures you collect the right amount from customers to stay compliant.

Set a default tax rate

Go to Settings → Taxes.

Here you can set a global tax rate that applies to all orders. For example, if you are based in the UK, you might set this to 20% (VAT).

• Percentage: Enter the rate (e.g., 20).
• Name: Give it a label customers will see on their receipt (e.g., "VAT", "Sales Tax", "GST").

This rate is calculated on top of the product price at checkout.

Inclusive vs. Exclusive Tax

Currently, ilanoShop applies tax exclusive of the price (added at checkout). Ensure your product prices are entered without tax if you expect tax to be added later.

Note: We are working on "Tax Inclusive" pricing settings for regions like Europe and Australia where the shelf price usually includes tax.

Check local requirements

Tax laws vary significantly:

• US: Sales tax is often determined by the customer's state (nexus).
• EU/UK: VAT is usually standard.

Disclaimer: We are a software provider, not tax accountants. Always verify your specific obligations with a local tax professional.

Test checkout

Before launching, add an item to your cart and proceed to checkout. Verify that:

1. The tax line item appears in the order summary.
2. The calculation is correct based on your rate.
3. The total includes the tax amount.