How to Exclude Shipping Costs from Tax Calculations on your WooCommerce Store?
With this guide, we’ll show you how to exclude shipping costs from Tax calculation on your WooCommerce store using the WooCommerce FedEx Shipping plugin.
WooCommerce shipping costs and tax calculation
With WooCommerce, you get to choose if you want to apply taxes on the shipping rates appearing on the cart and checkout pages.
Need to Exclude Shipping costs form the tax calculation
You have the choice to apply taxes to either each product or the entire cart. You also get to choose if you want to have a tax on the shipping charges you offer.
However, most shipping carriers like FedEx have either taxes already included in the shipping costs or are tax-free. So there’s no need to add additional tax to the shipping amount.
Let’s take an example of WooCommerce FedEx Shipping plugin and see how you exclude tax calculation from the returned FedEx shipping rates.
Since FedEx shipping is tax-free, I would like to exclude shipping costs from tax calculations. How do I configure this?
Solution using the WooCommerce FedEx Shipping Plugin
The shipping rates displayed by the WooCommerce FedEx Shipping plugin and are fetched directly from FedEx. These rates are inclusive of the necessary tax amount.
To exclude tax from shipping rate calculation, you need to move into the WooCommerce settings and hover up to the “Tax” section.
Once there, you can uncheck the Tax option on under the “Shipping” column from the respective tax rule. You can refer to the sample screenshot below.
Tax is that one area where users often face difficulty in setting up a WooCommerce store. It may get even worse when you try calculating the WooCommerce shipping costs and managing taxes.
We hope this article would have helped you exlcude tax from the shipping cost calculation. If you have any problem setting up the WooCommerce FedEx Shipping plugin, then feel free to Contact PluginHive Customers Support.
Happy selling! 🙂