Configurable Tax & VAT Engine
Automate Value Added Tax (VAT) or sales tax calculations on orders and shipping
Why Configure Automated Tax on Teyweb?
For registered corporate entities and formal retailers, calculating and remitting Value Added Tax (VAT) or state sales tax is a legal requirement. Manually calculating tax on every single order is error-prone.
Teyweb features a built-in automated tax engine (`StoreSettings.tax`) that dynamically calculates tax during checkout and records transparent tax line items on customer receipts.
Configuring Tax Rates & VAT Name
Navigate to Payments > Payment Settings and scroll to the Tax & VAT card:
Enable Tax Calculation
Toggle on the "Calculate Tax at Checkout" switch.
Tax Name / Label
Enter the tax name as it should appear on invoices (e.g., "VAT", "Sales Tax", or "Consumption Tax").
Tax Rate (%)
Specify the percentage rate (e.g., enter `7.5` for standard Nigerian VAT, or your local statutory rate).
Tax Inclusive vs Tax Exclusive Pricing
Teyweb supports both commercial pricing models:
| Model | Catalog Price Display | Checkout Math Example (at 7.5% Tax) |
|---|---|---|
| Tax Inclusive (Recommended for retail) | Product price in catalog already includes tax. | Shirt displayed as ₦10,000. At checkout, subtotal is ₦10,000, and receipt shows: "Includes ₦697.67 VAT". Customer pays exactly ₦10,000. |
| Tax Exclusive (Common in B2B) | Product price excludes tax; tax is added on top. | Shirt displayed as ₦10,000. At checkout, 7.5% (₦750) is added to the subtotal. Customer pays ₦10,750. |
Applying Tax to Delivery Fees
Under certain tax jurisdictions, shipping and logistics fees are subject to sales tax. You can toggle "Charge Tax on Delivery" on or off based on your company's legal tax structure.
Tax Breakdowns on Receipts & Accounting Reports
When tax is enabled, every customer email receipt and printed invoice displays an itemized tax breakdown line.
In your dashboard, when you export transaction histories via Payments > Transactions, the CSV includes a dedicated `taxAmount` column, making quarterly VAT filing with the Federal Inland Revenue Service (FIRS) straightforward.
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