Promotions and Taxation
When creating promotions, consider the effects of tax calculations.
Tax rates are determined as follows:
Promotion Class | Tax |
---|---|
Product |
Uses the tax rate of the related product line item. For example, if a product line item has a 5% tax rate, the same tax rate is used for the price adjustment. |
Order |
Calculates a mixed tax rate from all product line items in the cart. For example, the merchandise initial price is $105 and the merchandise discounted price is $100. The tax rate set for all order-level price adjustments is (105 / 100) - 1 = 5%. |
Shipping |
Uses the tax rate of the standard shipping line item in the shipment. For example, if a tax rate of 3% is set for the standard shipping line item, the same tax rate is used for the shipping price adjustment. |
If you need an alternative way to calculate tax for line items in an order, for example, if your back-end systems can't handle order-level discounts, see Line Item Tax Basis.