Tax rules and destinations

Tax in TitanCart is driven by three ideas: tax classes group products that share the same tax treatment, tax rates specify the percentage by destination, and settings decide whether prices already include tax or tax is added on top.

Step 1 — Configure the base settings

Go to TitanCart → Tax → Settings. The decisions you make here cascade through every other tax screen.

• Tax enabled — the master switch.
• Prices include tax — if on, the prices you type into the product editor are gross (customer-facing) and TitanCart backs out the tax for reporting. If off, prices are net and tax is added at checkout. European stores usually turn this on; US stores usually leave it off.
• Calculate tax based on — Billing address, Shipping address, or Store base address. For goods shipped to consumers, Shipping address is almost always correct.
• Display in cart / checkout — show prices “including tax” or “excluding tax” in the cart and checkout totals.
• Shipping taxable — if your jurisdiction requires tax on the shipping line.

Step 2 — Create tax classes

A tax class is a label you attach to products (“Standard rate”, “Reduced rate”, “Zero-rated books”, “Groceries”). You’ll configure rates per class.

Go to TitanCart → Tax → Classes → Add new. Common setups:

• Standard — applies to most products. Marked as the default.
• Reduced — for any products that qualify for a lower rate in your jurisdiction.
• Zero — for exempt products (books in the UK, children’s clothing in Ireland, many foodstuffs in the EU).

Step 3 — Enter tax rates

Click a tax class to open its rate list, then click Add rate. Each rate specifies:

• Country — required.
• State — use * to match all states.
• ZIP / postcode range — use * to match all, or enter a range like 9000-9999.
• Rate % — the percentage, e.g. 20.0000 for 20%.
• Name — the label shown to customers (“VAT”, “Sales Tax”, “GST”).
• Priority — if two rates match, the lower-priority runs first. Useful for stacking.
• Compound — if on, the rate is calculated on the subtotal + previous tax (not just subtotal). Canada’s GST+PST is the classic example.

Step 4 — Assign classes to products

In the product editor’s Pricing section, choose a Tax class. If you leave it as Default, the product uses the class marked as default on the Classes screen.

Tax-exempt customers

If you sell to wholesale or B2B customers who are exempt from tax in certain jurisdictions, create a customer group in TitanCart → Customers → Groups and mark the group as Tax exempt. Customers assigned to the group will see prices without tax added at checkout.

Importing rates in bulk

If you need to configure rates for many US states or EU countries, use the CSV import at TitanCart → Tax → Import. The template has one row per (country, state, zip, rate, name, priority, compound) combination.

VAT / EU digital goods

If you sell digital goods into the EU, the customer’s VAT rate is determined by their country, not yours. Create one Standard-class rate per EU country, set the appropriate VAT %, and enable Calculate tax based on → Billing address. For additional EU-specific rules (VAT number validation, invoice requirements, OSS reporting), consider the EU VAT extension.

Note: TitanCart does not automatically file or remit taxes. It calculates, displays and records them on orders and in the tax report. Filing is between you, your accountant and your tax authority.

Running a tax report

Under TitanCart → Reports → Tax, pick a date range. The report groups tax collected by rate name (VAT, Sales Tax, etc.) and jurisdiction, and offers CSV export for handoff to your accountant.