You can select a shipping tax code that should be used for shipping total cost calculation and specify if the shipping cost already contains a tax.
To change the shipping tax configuration:
Navigate to the system configuration (click System > Configuration in the main menu).
Select Commerce > Taxation > Shipping in the menu to the left.
The following page opens.
The following options are available on the page:
- Tax Code – a tax identifier that in combination with tax rules defines the tax rate that is applied for the shipping tax calculation.
- Shipping Rates Include Tax – select the box to avoid adding the calculated shipping tax to the shipping cost.
To customize any of these options:
- Clear the Use Default box next to the option.
- Modify the tax code list: click x to remove the item, type in the new code value and press Enter.
- Select/unselect the Shipping Rates Include Tax option.