Setting
a tax rate for all countries other than your own
In almost all cases, if a customer is located in another country they will not
be required to pay any tax. As such EROL sets as default the rate of tax for
all other countries at 0%.
This is controlled from the 'Apply a Default Tax Rate for the World' field.
Should your circumstances require it, this can be set at any percentage rate.
If there are any exceptions (i.e. European Union member states do not exempt
other member state nationals from paying that country's sales tax) you can set
these in the exceptional tax rate table below.
Setting a tax rate for individual countries other than your own
You may be required to apply different tax rates for countries other than your
own. This occurs in European countries, for example, where all European Union
member state nationals have to pay the sales tax for any other European country
they are purchasing from.
EROL allows you to select which countries will be required to pay your local
tax rates.
From the 'Country' dropdown menu, select the exceptional country, then below
'Rate %' set the rate that customers from that country will be required to pay.
This should normally be the same rate as your local sales tax. Repeat this for
all other countries that may be required to pay your local tax(es).
How EROL calculates global taxes
EROL calculates global taxes based on the destination of the product to be shipped
in relation to the tax rate you have applied for that particular country. If
the customer is located in a country not included on the exceptions list, they
will simply have to pay the default tax rate you have set for the world (i.e.
0%). If their country is one of the exceptions, they will pay tax at the rate
set for that particular country on the Global Taxes tab.