Magento Orders tax calculation (examples)
Once the Walmart order is imported to M2E Pro, the corresponding Magento Order can be created based on the configured Account Settings.
The way tax is calculated for the Magento Order depends on the selected Tax Source and Magento Tax Settings.
See the examples below to find out the logic of tax calculation with different settings in Magento and M2E Pro.
Example 1. Tax Source is set to None
If the Tax source is set to None both Walmart and Magento Tax settings will be ignored. As shown in the screenshot, the Magento Order will contain no tax amount.
Magento Order Totals
Example 2. Tax Source is set to Walmart
When you select Walmart as a Tax Source, the tax in Magento Order will be calculated according to Walmart tax settings.
- Tax is included in the item final price
Let's see how the calculation works when you apply 20% tax to the Walmart item with no change to its final price.
This way the Magento Product of $100 will be listed on Walmart at the same price. It already contains a 20% tax amount.
When the Walmart order with a 20% tax is imported to M2E Pro, the Magento Order with the 20% tax amount will be created.
Walmart Order Totals
Magento Order Totals
- Tax is excluded from the item final price
Now let’s find out how tax is calculated when 20% tax is excluded from the Walmart item final price.
In this case, the Magento Product of $100 will be listed on Walmart with a price of $120.
Both Walmart and Magento orders will have a 20% tax amount.
Walmart Order Totals
Magento Order Totals
Example 3. Tax Source is set to Magento
If you set Magento as a Tax Source, any tax value returned from Walmart will be ignored. Magento will use Tax Rules for tax calculation.
Let’s configure the Tax Rule for Not Logged-in Customer Group, Taxable Goods Product Tax Class, and +20% for Florida Tax Zone/Rate.
It means that the 20% tax will be applied to the Magento Order with items related to Taxable Goods purchased by the Not Logged-in customer from Florida.
The way tax is displayed in the Magento Order depends on your Calculation Settings. Configure them under System > Configuration > Sales > Tax.
- If the Catalog Prices are set to Excluding Tax, the tax amount will be added on top of the Magento Product price.
So, based on the Tax Rule above, the Magento Product of $100 will be listed on Walmart at an equal price.
The imported Walmart order will contain no tax. The Magento Order will include 20% of the tax amount.
Walmart Order Totals
Magento Order Totals
- If the Catalog Prices are set to Including Tax, the tax will be calculated into the final Magento Product price.
According to the mentioned Tax Rule, the Magento Product of $100 will be listed on Walmart with a price of $100.
The Walmart order will be imported with 0% tax. The Magento Order will have a 20% tax amount.
Walmart Order Totals
Magento Order Totals
