## Configuring Taxation

You can set different tax rates that can be applied automatically to orders total amount depending on a customer tax zone. The tax zone can be bound to a buyer's country (state) of residence or to a customer's account. In addition, you can create the default tax zone to define the tax rate for any of the countries you did not created a special tax zone. Tax zones can include several tax rates and it is possible to set the order of these tax rates application.

If taxation is enabled, you can configure the HSPstore to show prices taxed in accordance with a particular tax zone defined for HSP account. Or you can just show the net prices and the notification saying that the prices are taxed depending on the customer's individual Tax Zone.

It is also possible to use tax exemption for foreign customers, i.e., customers that specified in their account profile a country of residence other than your HPS company resides. To use tax exemption, it is necessary to enter the HSP VAT Number into the Billing Director - Taxation Manager - Setup form and enable tax exemption.

When tax exemption is enabled, the foreign customers can enter their own VAT Number into a customer account profile either from the Control Panel or during account creation in your HSPstore. In addition, you can manually enter VAT Numbers for your customers (in Account profile -> Financial Info tab).

Note: Tax exemption affects business accounts only. Personal accounts (with a single contact) are subject to the relevant taxation settings.

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 manually verify and approve either both the customer's address (i.e., the tax zone) and VAT Number or one of them.

Note: For EU customers the VAT Numbers are always checked in respect to the correspondence of the VAT Number entered by a customer to the country of residence specified in a customer account profile. You can set the automated approval mode VAT Number for EU customers in case the check had shown that the code does correspond to the customer country of residence.

You can configure taxation in the Billing Director - Taxation Manager.

In This Section Setting Up Tax Rates Enabling Taxation Setting Up VAT Validation Rules

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