Postal services from nearly 25 countries including the UK have either suspended or altered deliveries to the U.S
What is GST tax and how do you set it up?
Goods and Services Tax (GST) is a value-added tax that can be configured in Country Maintenance within the system.
What are the limitations?
GST can only be set at a flat percentage per country. It does not account for different rates based on product origin. For example, if a product from China requires 40% and one from the EU requires 20%, the system will still charge a single flat rate defined in the back office, regardless of origin.
Is any further setup required?
Yes. For US orders, you must configure Delivered Duty Paid (DDP) with your carrier. The US requires tariffs to be paid before goods enter the country, so your carrier needs to handle this process. Ensure they also have the required details, such as Country of Origin, to complete shipments smoothly.
Can we set up a separate SID for US items?
No, this is not possible. Alternatively GST tax can be applied to all US orders. You will also need to confirm with your carrier whether they provide services to ship items to the USA.
The first step to adding GST is creating the product. This can be the same as creating postage or any product so the product can be reported on. You potentially would need to report on this later on so it is best to create the product as US Tax & Duties or something similar.
However things you may need to remember to mark the product with - the product is a non physical item and a third party product. This will ensure that the product is not included on the despatch label that prints out for shipping overseas.
In Stock Amendment -
Once created you need to obtain the barcode of the product as this will be needed to add against the Country.
Go into File Maintenance - Coutries - search United States and change.
In the program there is an option to Apply GST Tax - when this is ticked you will see 2 additional fields available. Here you can add the percentage tax you need applying and the barcode of the Tax product.
Once this is added when the customer selects United States as the delivery address the tax will be added which will be a percentage of the order value.