Replies: 3
Hi,
I want some help with tax setup. I am selling a product which has tax rate 5% and shipping charges costs 18% tax. For buyer, tax on product and shipping charges are already included. But I want to assign proper tax rate to product and shipping.
In WooCommerce > Settings > Tax > Standard Rates, I have added 2 rows viz. 5% and 18% and checked Shipping box on 2nd row. Now in WooCommerce > Settings > Tax > Tax Options, I have to select Shipping tax class which has following options
- Shipping tax class based on cart item
- Standard
- Reduced Rate
- Zero Rate
Now I have 2 confusions
- Since I have 2 rows added in standard rates, which one will be applied to products?
- I have selected row 2 as Shipping tax class in standard rates section. In Tax Options, if I select Shipping tax class as
Standard, will it apply only 18% rate or both?