Overview

Linnworks Order Management and Stock Control system can automatically recalculate applicable order tax. The system is capable to calculate tax as:

• Calculate and record inclusive/exclusive tax for each order item based on default tax rate
• Calculate and record inclusive/exclusive tax for each order item based on tax rate set for individual stock ite
• Overwrite the default tax rate for each country
• Recalculate inclusive postage cost and record the value in Postage Excluding Tax.

Inclusive tax is the tax which is already incorporated into the final advertising cost of a product. For example if you sell the product for €100 and the tax rate of 25% is already included in the price the actual cost of the product without tax is €80 for which you charge 25% (€80 * 0.25 = €20) tax yielding final cost of the product €100.

Exclusive tax means your product selling prices do not include tax and you add the tax on top of the product cost at the point of sale.

All orders downloaded from a channel (Amazon, eBay, PlayTrade or a website) assume inclusive tax (meaning you already included tax at the point of sale).

For direct orders you can set the system to calculate tax as inclusive or exclusive.

Configure Tax Calculation

To configure Linnworks Order Management and Stock Control system to calculate tax for orders:

• Go to Settings > Application Settings >
• Specify the default tax rate in the "Tax Rate" field; [This default tax rate is only used when a country specific tax rate is not defined]

• Specify whether direct orders will be calculated as Inclusive or exclusive tax (whether your product prices already include tax or not);
• The default tax rate can be specified for each country individually. Click on "Countries List"; 

Overwriting tax rate for each stock item

To overwrite tax rate for each product individually:

• My Inventory;
• Find the product you want to change the tax rate for;
• Edit item;
• Uncheck (system default);
• Specify the tax rate that is applicable to the stock item;

Where to find tax fields

Order Book > Open Orders > Right click on selected order > View > View Order

Settings > Template Designer > Drag Order Items onto template > Double Click > Summary

You can choose and adjust different variables such as Subtotal, Tax, Postage Costs Excluding Tax for summary fields, as well as change positioning of each field.

If you have set default tax rate in Settings > Order Book Settings > Tax Calculation, the tax fields will be visible on the New Order/Edit Order screen and the tax will be recalculated when you make changes to the order details.