Imagine you sell different types of products — some subject to one tax rate, others to a different one — and you also ship those products to several countries, each with its own tax regulations depending on the origin and destination of the goods. Applying a single tax policy across your entire catalog, without distinguishing by product or by country, can lead you to charge too much or too little tax on specific transactions, with the legal and accounting consequences that entails.
A tax policy for every product-and-country combination
Magicfront AI lets you configure different tax policies based on the product and the country of origin and/or destination. Instead of applying a single tax criterion to the whole store, you can define specific rules that combine the type of product being sold with the country it’s shipped from and the country it’s shipped to, adjusting the applicable tax to each specific situation.
Say your catalog includes products with different tax treatment
Not every product in a catalog is subject to the same tax treatment: some may have a reduced rate, others a general rate, and others may be subject to specific regulations depending on their nature. Being able to link a specific tax policy to each product, instead of applying the same criteria to the entire catalog, is what allows the store to calculate the correct tax on every sale, without relying on manual adjustments case by case.
The country of origin and destination matters too
Besides the product, the country the goods are shipped from and the country they arrive in are key factors in calculating the applicable tax. Magicfront AI takes both ends of the transaction into account, which makes it possible to configure tax policies that respond to the real origin-destination combination of each order, instead of assuming that every shipment starts from the same point or reaches the same type of market.
A solid tax foundation for operating in several countries
The more countries and the more product variety a store manages, the more important it is to have a tax setup capable of reflecting that complexity without manual intervention. Defining tax policies by product and by country of origin and/or destination from the backoffice is what allows the operation to scale without the team having to manually review every possible combination.
In summary
Configuring different tax policies based on the product and the country of origin and/or destination lets you calculate the correct tax on every order, adapting to the real complexity of your catalog and the markets you operate in, without having to manage exceptions manually.