How to Make Extra Fees Taxable or Non-Taxable in WooCommerce

Tax rules can vary depending on your region and the type of fee. This use case shows how to mark extra fees as taxable or non-taxable to stay compliant with local regulations.

Overview

Using the Extra Fees plugin, you can configure whether a specific fee should include tax. This ensures your WooCommerce store follows legal tax requirements while maintaining accurate totals at checkout. (Plugin Feature: Taxable/Non-Taxable Fees)

Business Impact Example: Setting tax correctly on service fees helps businesses avoid penalties and ensure compliance, especially in regions where certain charges are considered taxable. It also streamlines accounting and prevents tax misreporting, potentially saving thousands in audit risks.

Preconditions

• Extra Fees plugin is installed and activated.
• Tax settings are configured in WooCommerce

Steps (Basic Flow)

1. Go to Dashboard > Extra Fees
2. Click Add New Fee
3. Name the fee: Service Fee
4. Set Fee Type and Amount as needed

5. Under Tax Settings, choose Taxable or Non-Taxable based on your local regulations

   

6. Click Save Fees

7. At checkout, the fee will be taxed or excluded from tax based on your configuration

   

Alternate Flow

• You can change the tax class (e.g., Standard, Reduced Rate) as needed.

Expected Outcome