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Configuring taxes in Lightspeed eCom (E-Series)

For online sales, you need to collect taxes and forward the collected amounts to the tax authorities (sales taxes in the US, VAT in Europe, GST in Canada, etc). If you have already set up sales taxes in Retail POS, you can duplicate those rates for your online store.

There are two ways to set up taxes for your eCom store:

  • Automatic taxes: Available for merchants in the USA, Europe, UK, Canada, Australia, New Zealand, India, South Africa, Taiwan, Singapore, Malaysia, Indonesia, Saudi Arabia, Canary Islands, Melilla, and Ceuta. Automatic taxes provide up-to-date rates across the store and can be enabled in a single click.
  • Manual taxes: If automatic taxes are not available for your country or your business requires a specifically tailored taxation scheme, configure taxes manually.

Setting up automatic taxes

To set up automatic taxes:

  1. Navigate to the Online tab > Settings > General
  2. Scroll down to the Company address section and enter your legal company address. This address is needed to calculate and apply the right tax rate to orders at checkout. general-settings-company-name-address_eCom.png
  3. Open the eCom Admin Panel by navigating to Setup > Apps > Lightspeed eCom and clicking the Open in a new tab icon. eCom-admin-panel.png
  4. In the left-hand menu, hover over Settings, then select Taxes
  5. Enable automatic taxes by clicking the toggle. setting-up-taxes_eCom.png

Once enabled, automatic taxes will determine a precise tax rate at checkout depending on where you and your customer are located and will apply tax to each order.

By default, the same standard tax rate of your store’s region applies to all products. If some of your products are taxed differently (e.g., they are tax-exempt), you can change the tax rate for those products.

Setting up manual taxes

You can manually configure your online store to calculate tax rates for different regions, zones, and countries. You should set up taxes manually if automatic taxes are not available for your country or you need a complex taxation scheme tailored to your business.

The below instructions use a 10% tax for a state to illustrate the setup process.

Step 1: Add a zone

Create a destination zone for the tax rate to apply. A destination zone, or a shipping region, is a geographical area that you ship to. With zones, you can define where you sell and how much you charge for delivering orders to various customer locations.

If the same tax rate applies to several different states, you can create one zone consisting of these states and set up a tax rate for this zone.

To add a zone for the tax:

  1. Open the eCom Admin Panel by navigating to Setup > Apps > Lightspeed eCom and clicking the Open in a new tab icon. eCom-admin-panel.png
  2. In the left-hand menu, hover over Settings, then select Taxes.
  3. In the Manual section, click Manage Tax Rates. manual-tax-rates_eCom.png
  4. Click + Add New Tax and Save.
  5. Click Manage zones (global) to open the Destination Zones page. manage-zones_eCom.png
  6. Click + Add New Zone.
  7. Add State, Add Country, or Add Region and add the necessary state, country, or region. destination-zone-page_eCom.png
  8. Set a clear name for the zone. For example, States with a 10% tax rate. Tax zones and destination zones are displayed on the same Zones page, so make sure to include the word "taxes" in the name of your tax zone to avoid confusing it with other shipping zone you may create. Customers won't see the name you picked for the zone.
  9. Save the changes.

Step 2: Add a tax rate for the zone

  1. Open the eCom Admin Panel by navigating to Setup > Apps > Lightspeed eCom and clicking the Open in a new tab icon.
  2. In the left-hand menu, hover over Settings, then select Taxes. If automatic taxes are enabled, make sure to toggle it off.settings-taxes-automatic-off_eCom.png
  3. In the Manual section, click Manage Tax Rates.
  4. Click + Add New Tax.
  5. Enter your tax name. For example, 10% Tax. Customers will see the name you picked for the tax at checkout. adding-tax-rate-for-zone_eCom.png
  6. If the tax applies to all products, check the Enabled by default for all products option.
  7. Choose whether the tax applies only to the subtotal or to the subtotal and shipping.
  8. (optional, based on your country)
    1. Check Include tax in product prices if you'd like the price to include tax. Customers will see the tax-inclusive product prices in catalog as soon as your store detects their location. Otherwise, tax will be added at checkout once the buyer fills out the address form.
    2. Check Manage tax displaying settings > Change Pricing Settings to set whether you enter prices in your store with taxes included (gross prices) or without taxes (net prices). In case of net prices, the tax is added at checkout.

      Your product prices will not be automatically updated if you switch the pricing scheme. You will need to check your product prices and update them manually after the switch to avoid unexpected price changes.

  9. Choose whether a shipping or billing address defines the zone for a customer.
  10. Click Specify rates per zone. Select the zone you created in the Step 1 and enter the applicable tax rate.
  11. Make sure the tax is enabled and save the changes.

If you have several taxes and/or zones, repeat the steps above for each one.

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