How to charge extra fees as taxable?
You can configure extra fees as taxable in the WooCommerce Extra Fees plugin to ensure taxes are applied to the additional charges. This helps you maintain accurate tax calculations and comply with legal requirements.
In the article
How to apply custom tax on extra fees - video guide
Why we need to apply custom tax on extra fees
Steps to charge extra fees as taxable
First, go to the Dotstore > WooCommerce Extra Fees > Manage Fees from your WordPress dashboard.
Configure the Fee Details: Configure the fee title (e.g., "Taxable Fee"), set the fee type ("Fixed Fee" or "Percentage Fee") as required, and set the fee amount you want to charge.
Apply the custom tax on checkout: On the checkout page, the 10% standard tax will be applied to the product and fee amounts. Here, Standard tax charges are also set to 10%.
Selecting the appropriate tax class
WooCommerce provides three default tax classes to apply different tax rates to your products and extra fees:
- Standard Rate – For general products and services.
- Reduced Rate – For items with a lower tax rate (e.g., essential goods).
- Zero Rate – For tax-exempt products or services.
You can also create custom tax classes (e.g., Custom Duty) to apply specific tax rates according to your business needs. This allows you to charge different tax amounts for various extra fees and ensures compliance with regional tax laws.
Tip: When configuring extra fees, choose the tax class that aligns with your product or service to ensure accurate tax calculations during checkout.
Example use cases
1. Import duty fee on international orders
- Scenario: Charge a 29% custom duty tax on imported products shipped to the United States.
- Configuration:
Create a custom tax class named "Custom Duty" with a 29% tax rate.
Set the custom tax class to your clothing product.
Apply the Custom Duty tax class to the extra fee for international orders.
Set the fee to apply only if the shipping country is the United States.
- Calculation:
- Base Fee: $21
- Custom Duty (29%): 29% of Subtotal + 29% of fee = $28.42 + $6.09 = $34.51
- Total Charge: $168.51
2. Special packaging fee with reduced tax and custom duty tax on product
- Scenario: Charge a $9 packaging fee plus 5% Reduce tax for orders shipped to the United States.
- Configuration:
Add a new Fee for Special Packaging with a $9 charge.
Assign the Reduce Tax (5%) tax class to this fee.
- Calculation:
- Packaging Fee: $9
- Custom Duty (29%): $28.42 on Cart Subtotal
- Reduce Tax (5%): $0.45 on Extra Fee
- Total Charge: $135.87
