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PHP 5 e-commerce Development by Michael Peacock

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Tax

There are three main ways to tackle tax costs in an e-commerce environment:

  • We include tax in our product prices
  • We assign tax codes to products to separately calculate and display tax costs
  • We calculate tax based on the location of the buyer

The exact requirement for a particular store depends on the store itself and the laws applicable in that country or state. In some situations we can include the tax for a product in its price; it doesn't need to be displayed to the customer. In others, we may wish for tax to be shown and calculated for the customer, if they are able to reclaim this tax (for example UK/EU VAT), and in some states in the US different states have different taxes depending on the buyer or seller, where some customers may be taxed, ...

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