How to Remove or hide tax from checkout in WooCommerce

Removing taxes from the checkout is a great option to hide the inclusive taxes from your buyers. You can charge a fair amount of taxes without letting them know if you have covered all the areas on your site smartly. For this purpose, the WooCommerce built-in tax system must be used whether you are selling digital items or physical goods unless you are well-versed in online sales tax rules. There are two techniques for keeping the taxes confidential.

Hide the taxes at the checkout
Set the prices to be inclusive of taxes

We will be discussing both of them in detail in this guide. But before we proceed with the explanation, you need to configure the WooCommerce settings.

How To Configure WooCommerce Tax Settings?

To begin with the configuration, you should be logged in to your website and must be present in the settings menu of your WooCommerce tax plugin. On the settings menu, you will see a “Tax” option. You need to tap it and enter the new window. There will be two options present there.

Yes, I will enter prices inclusive of Tax
No, I will enter prices exclusive of Tax.

The first option means that you will be adding the prices inclusive of taxes. This means you will keep an estimate margin for Taxes for all of your products. On the other hand, the second option means you will be allowing the plugin to decide the Tax value by allotting it an estimate price. This price can be assigned according to the area, product or any other thing. Now, let us discuss both the settings one by one and how they can be helpful for your store.

1. Setting Tax Exclusive Prices (Hide Tax At The Checkout)

Hiding Taxes at the checkout is a great option for taking Tax from the customers without actually making them realize. WooCommerce has a feature that lets you exclude a customer from paying tax or VAT. As an example, if they input a Tax/VAT number, or if they enter a certain ZIP code, you may enable exemption.Set is vat exempt() is the name of this function, which may be used in conjunction with a quick technique to "grab" a checkout field as you type. Here are the steps to get the job done.

Go to the WooCommerce settings
Select the Tax option
Check the option 2 i-e (No, I will enter price exclusive of Tax)
Then, choose on which basis you want the tax to be calculated either customer billing address, shipping address or store billing address.
Select the prices according to classes and give an estimate to each class
Save the settings.

These settings will allow the plugin to automatically calculate the taxes based on the location of the buyer, seller or the store.

2. Setting Tax Inclusive Prices (Set The Prices To Be Inclusive of Taxes)

This is the recommended option since it allows you to set manual prices and add the taxes accordingly. For this purpose, you just need to calculate the percentage of taxes manually and add them to every product price. This will hide the tax prices from all the products and the plugin will show zero taxes on the front end.

How To Manage Taxes On WooCommerce?

However, the process is not as simple as it seems. For larger online stores selling worldwide and doing different modes of ecommerce business, managing taxes can be a really overwhelming process. You need to be aware of the VAT of different countries. Moreover, taxes are completely different when it comes to buying and selling. So, for this purpose, you need to be aware of some of the major WooCommerce tax management features. 1. Setting tax rates: Your tax rates must be according to the country you are selling and purchasing.2. Deleting tax rates: Tax rates can be deleted on different returns or once they are filed. 3. Tax variables: It is important to understand different tax variables on WooCommerce to better understand the taxation process. 4. Tax reports: These reports maintain the tax reports of the store. To begin collecting and submitting taxes, you must first understand the nexus between your business and the sales tax. Every state has its own set of procedures for collecting sales tax, and when you have numerous sales tax nexus, things might become a little complicated. As a result, you'll need to either automate your tax preparation or pay someone to do it for you. Location of the shop and location of the consumer are two separate categories for taxation purposes. Due to the additional obstacles, the customer location tax is imposed the least.After that, it's time to refund taxes that you've already collected since you don't own them. Because each state has its own set of procedures for submitting sales tax returns, this is a time-consuming task that is beyond the capabilities of the average individual. Online tax filing is permitted in certain states, while it is not in others. Because the due date for tax filings might be quarterly, monthly, or annually, you must be abreast of any changes.

Automate Your Taxation with WooCommerce Tax Plugin Finpose

From the backend, the WooCommerce Tax plugin Finpose allows you to exempt particular customers or user roles from taxes. Customers may submit a tax exemption request form, which you can quickly examine and accept/reject from your admin account.Additionally, you may individually pick consumers for tax exemption without submitting a request form. On the checkout page, you may include a tax exemption button. Let's have a look at some further features:

Create a tax exemption request form for clients to complete.
Admins have the ability to accept or deny outstanding tax exemption requests.
The progress of a customer's request may be seen on the "My Account" page.
Tax exemptions are available for certain clients and user roles.
Notify customers through email of their demands.
Establish a date for the tax exemption to expire.

Conclusion

So, all in all, managing the taxes of an online store can be a hectic task if you are not automating it. At the same time, you also need to make sure you have properly hidden all the sales taxes.