How to apply custom tax rates on extra fees in WooCommerce

You can now apply custom tax rates to the custom fees you’ve created in WooCommerce. This feature allows you to utilize tax classes configured in your WooCommerce settings, ensuring that taxes are applied consistently across products and custom fees.

Enable Taxable Amount for Custom Fees: When creating or editing a custom fee, navigate to the fee configuration settings and check the “Is Amount Taxable” option.

A dropdown menu will appear once this option is selected, allowing you to choose the applicable Tax Class. The tax classes available in this dropdown are sourced directly from your WooCommerce settings.

Selecting the Appropriate Tax Class: From the dropdown menu, select the Tax Class you would like to apply to the custom fee.

The tax rate assigned to that particular class in the WooCommerce settings will automatically be applied to the customs fee amount. This ensures that custom fees are added to the same tax rules as other products in your store.

Front-End Cart Display: Once the tax class is selected and the fee is applied, you can view the results on the front-end cart page.

For example, if you have a custom fee of $20 and the selected tax class applies a 20% tax rate, the tax amount will be displayed in the Tax row of the cart page.

Additionally, if the product itself is taxable, the product tax and the customs fee tax will be calculated and displayed separately in the cart’s tax summary.

Conclusion:

This seamless integration between custom fees and WooCommerce tax classes allows for precise control over how taxes are applied, improving accuracy and transparency for both store owners and customers.