Zettle POS Integration for WooCommerce
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Tax settings and calculations

Setting up taxes

Setting up taxes and tax rates is one of the first tasks you would want to perform before syncing with your Zettle account. Keep in mind that tax settings both in WooCommerce and Zettle need to match for syncing and for the payments to work properly.

To specify taxes for a purchase, you will need to follow the below steps:

  1. Enable taxes in WooCommerce to begin with.
  2. Enter in which country you are selling – every country has its own tax rates.
  3. Set the currency used for purchases in your store.
  4. Specify details on how taxes will be entered in the future: including or excluding tax for example.

Enabling taxes

  1. Go to: WooCommerce > Settings > General.
  2. Select Enable Taxes and Tax Calculations checkbox.
  3. Save changes.

When this is active, tax calculation can be made and configured in WooCommerce. When not, product prices will be displayed as they are, and no calculation will be done at checkout.

Store address

  1. Go to: WooCommerce > Settings > General.
  2. Select Country / State.
  3. Save changes.

Country / State is important for information where the store is located and for which country we calculate tax.

Currency

  1. Go to: WooCommerce > Settings > General.
  2. Select Currency.
  3. Save changes.

The currency that the shop uses

Configuring tax options

To start configuring taxes:

Go to: WooCommerce > Settings > Tax. This tab is only visible if taxes are enabled.

The Tax tab displays several options that can be set to suit your needs — the settings you choose are based on the tax jurisdiction under which your store is located.

Prices entered with tax

This option is perhaps the most important when managing taxes, as it determines how you input product prices later on.

  • “Yes, I will enter prices inclusive of tax” means that all catalog prices are input using your store’s base tax rate.

You have to change the Display prices in the shop and Display prices during cart and checkout options to Including tax from the drop-down. When you decide to show price inclusive of taxes, the price of the selected product will appear with the tax on the Cart page.

Similarly, this will reflect on the Checkout page.

The total amount on the Checkout page under Your Order section also shows the tax amount included.

The tax calculation for tax-inclusive prices is:

tax_amount = price – ( price / ( ( tax_rate_% / 100 ) + 1 ) )

  • “No, I will enter prices exclusive of tax” would mean that your catalog prices need to be tax exclusive.

Also, you have to change the Display prices in the shop and Display prices during cart and checkout options to Excluding tax from the drop down. When you decide to show the price exclusive of taxes, the price of the selected product will appear excluding the tax and the tax will be added separately in the Order Total on the Cart page.

Similarly, this will reflect on the Checkout page.

The total amount on the Checkout page under Your Order section also shows the tax amount calculated separately.

The tax calculation for tax-exclusive prices is:

tax_amount = price * ( tax_rate_% / 100 )

Tax Classes and Lists

Tax classes are assigned to your products based on a Country. Currently, we do not synchronize US tax rates.

Each class is listed at the top of the tax settings page – click a class to view tax rates assigned to the class.

Product Tax status and class

  • Tax status defines whether or not the entire product is taxable or just the cost of shipping it.
  • Tax class is used to apply the different tax rates specific to certain types of products.

For Variant Product, to be able to synchronize the product, each variation must have the exact same tax class.

Account information from WooCommerce and Zettle

Account Information such as country, currency and tax define if the Zettle account is set to use VAT, sales tax or no tax is applied to all product prices. It also defines if a product’s prices are to be considered including or excluding taxes.

VAT and sales tax

Depending on the Zettle merchant’s account country, different options are available for handling sales tax and VAT rates for products in the Zettle Product Library.

Also depending on the merchant’s Zettle account properties and settings, a product’s price values set in the Zettle Product Library may either include or exclude taxes (gross/net values). A correct net or gross price value must be used when creating products in the Zettle Product Library, and a merchant is warned about any inconsistencies between the WooCommerce and the Zettle account’s tax handling that may affect the merchant. Some of the Zettle account’s tax settings can be adjusted by the merchant and may therefore change over time (e.g. the gross/net setting for US accounts).

No tax account

If the merchant’s Zettle account does not support any taxes, no additional information needs to be provided when creating products in the Zettle Product Library.

VAT account

In VAT countries, the products in the Zettle Product Library must set the VAT percentage value to either zero or to a valid VAT rates of the merchant’s country. Trying to submit an invalid VAT percentage value will result in an error of type VAT_NOT_ALLOWED_IN_COUNTRY in WooCommerce log files.

VAT global settings

VAT settings on product level

Sales tax account

In countries using sales tax, a Zettle merchant will be able to set up multiple sales tax rates in the Zettle Back-office. The merchant can mark one or multiple of the created sales tax rates as “default” to be assigned automatically to newly created products in the Zettle Back-office.

TAX global settings

TAX settings on product level

Assigning Default Sales Tax Rates

Enable Default checkbox when creating a new product in the Zettle Product Library to have the merchant’s default tax rates assigned to the product.

Tax Exempt Products

A product in the Zettle Product Library can be marked to be exempt from sales taxes by setting the optional checkbox enabled. Note that this setting is independent of the sales tax rates that are applied to the product: regardless of the assigned sales tax rates, no tax rates will be applied to this product’s price for purchases.

Zettle POS for WooCommerce general workflow and checks for tax

In the step 3 of the onboarding process we check if the settings in Zettle and WooCommerce match.

  • If the country and currency do not match you will not be able to sync prices.

  • If the country and currency match, but tax rates and calculations are disabled, then you will not be able to sync prices.

  • If the country and currency match, tax rates and calculations are enabled and prices entered with a tax match , you will be able to sync prices and tax.

  • If the country and currency match, tax rates and calculations are enabled, but prices entered with tax do not match, you will be able to sync prices, but the prices will be automatically adjusted to include/exclude taxes and your margins will change.

Syncing is available only for simple and variant products.

Note that for variant product, the same tax must be set for each variant to be able to sync the product.