Administration
Taxes
KonaKart employs a Tax calculation system which has been proven to comply with the tax systems for most countries around the world. Here’s how it works:
- Each product can be associated to a tax class which defines how the product will be taxed. For example, food products may be taxed differently to luxury goods.
- Tax areas may be set up and mapped to physical areas. For example, one tax area may be a whole country whilst another one may be a single state within the country.
- Finally, a tax rate can be associated to a tax class within a tax area to define the rate of tax for a type of product within that tax area (i.e. 6% tax for food goods within a tax area that covers the state of Florida). If a location lies within multiple tax areas, then the tax rate is compounded. For example, a product may require a state tax as well as a country wide tax.