zingfit offers the ability to customize Tax Rates according to your regional tax regulations including compound and variable rates.
To create a tax class, go to Admin > Configuration > Tax Class + Add Tax Class.
Type the name of the Tax Class into the Name field. This Tax Class is configurable from the Tax Zone and Advanced Tax Rates described below.
Once Tax classes are created they can be assigned to Tax Zones. To access Tax Zones page click Admin > Configuration > Tax Zones.
Tax zones may refer to an actual regional zone if you have multiple locations or if you are shipping items out of your local zone where taxes may vary. A studio may simply use tax zones to apply Taxable or Non-Taxable to an item.
Name - The name of the Tax Zone
Based on/ Country- Chose the regional setting to apply the appropriate Country, State, or Zip Code to this Tax Zone. This setting does not auto-populate a rate based on the location chosen.
Tax Rates- Assign the appropriate rate to the Tax Classes that were previously created.
What are considered Advanced Tax Rates?
Multiple Tax Classes might be necessary for compound tax rates or in states where the tax is variable such as in the examples below. Variable Taxes - Some states have a variable tax depending on the region and qualifications of the items sold. For example, in the state of New York sales of eligible clothing and footwear costing less than $110 in certain jurisdictions are fully exempt from all state and local sales and use tax.
See the link below to read more. http://www.tax.ny.gov/pdf/publications/sales/pub718c.pdf
Compound Taxes - A compound tax, or stacked tax, is calculated on top of a primary tax. For example, in Quebec and Prince Edward Island, the provincial tax is calculated after federal tax has been applied to the price of an item.
Configuring Advanced Tax Rates -
If a single Tax Zone is assigned a rate in more than one Tax Class field, an Advanced Settings button will appear on the Tax Zones page as seen below. To access this page click Admin > Configuration > Tax Zones. In advanced settings Tax Zones are listed across the top of the menu, but only the Tax Zones that have a Tax Rate assigned to multiple Tax Classes will be editable. From this screen studios have the ability to:
Once a Tax Zone is chosen click on the pencil icon next to the Tax Class to edit the advanced settings.
Minimum and maximum price - use these fields to set a price threshold for states where tax varies according to the total amount spent.
In studios, a Tax Zone must be set for each Studio as well as the Online Store Products and services must be assigned a Tax Class.