How do flat rate taxes work for Cart66 Cloud?
Our highly flexible tax rate system allows you to set up as many tax rates as you need and also supports adding, replacing and compounding rates.
Tax Rates are setup for specific Regions that you configure.
Tax Regions can be configured for countries, states, zip codes, and ranges of zip codes.
The add, replace and compound options only get enabled if more than 1 tax rate is in the system (not needed otherwise).
For the sake of the examples below, let's say we have 3 tax rates, Federal, State and County.
Add is used if you need all 3 of these tax rates to be added together to give the final tax amount on an order.
Replace is used if say you need the State tax to take precedence over the Federal tax, essentially canceling out the Federal tax.
Compound is used in some parts of the world (Canada being one of them) that not only add the tax rates together, but compound them as you go. So, the effective tax rate for Federal + State would be Federal + (Federal + State).