### Setting Up Tax Rates

You can set different tax rates that can be applied automatically to orders total depending on the customers' country of origin. To this effect:

- Create a number of Tax Rates each representing a particular tax rate with a certain application period.
- Create a number of Tax Zones each associating one or more particular tax rates (being applied in a certain order) with a particular buyer's country or a buyer's account. So that a customer's order sum would be calculated in accordance with the country indicated in his (or her) Account profile. Note that you can create the default Tax Zone to define the tax rate for any of the countries you did not created the special Tax Zone.
- You can enter your own VAT number (if any) and enable (or disable) the tax exemption depending on your needs.
- Your customers can enter their own VAT number either from the Control Panel or during account creation in your HSPstore. In addition, you can enter the VAT numbers for your customers (Account profile -> Financial Info tab).
- Configure your HSPstore to show prices taxed in accordance with a particular Tax Zone. In this case you can just show the net prices and the notification saying that the prices are taxed depending on the customer's individual Tax Zone.
- Enable taxation for your HSPstore in general.

The mode when taxes are not calculated for an account is called tax exemption. This feature is available for users from all countries, but particularly supported by European Union members due to certain peculiarities of EEC taxation.

To make taxation more secure and strict, you can set the orders processing in such a way that no transactions will be allowed until you verify and approve either both the customer's address (i.e., the tax zone) and VAT number or one of them. Three statuses can be assigned to a customer address or VAT number:

- "Not Checked" status is assigned by default to customer's address and VAT number. In this case, if you have set taxation to secure mode, transaction is not allowed.
- "Approved" status allows transaction and further processing of customer's order.
- "Rejected" status forbids order processing.

To change the account address verification status, select the Account Director:

1. Select the Account:
   - For Customer Account go to the Account Manager, get the accounts list displayed and click on the account ID.
   - For Reseller Account go to the Reseller Manager, get the accounts list displayed and click on the account ID.
2. Click the Edit button at the account General Settings form.
3. Select the address status from the Address verification status drop-down menu.
4. Click the Update button.

To enter the VAT number, or (and) change the account VAT number, or (and) assign a special tax zone to an account:

1. Select the account as this described above (item 1).
2. Select the Financial Info tab.
3. Click the Edit button.
4. Change settings:
   - You can type the customer's (or reseller's) VAT number into the VAT number field.
   - You can select the VAT number status from the VAT number verification status drop-down menu.
   - You can assign a special tax zone to the account by selecting it from the Tax zone assigned manually drop-down menu.
5. Click the Update button.

Note 1: If taxation is enabled, the orders amount is calculated in accordance with both the buyer's country and the VAT number (if any), even if the customer's address and VAT number are not checked and approved.

Note 2: If the customer's order is already calculated but not paid yet, and by the moment of the order processing the taxes have been changed, it is not possible to process such an order. In this case you should recreate an order using the Recreate button that appears below the order details.

In This Section Specifying Tax Rates Adding Tax Zones

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