Order Management supports different types of taxation policies including sales tax and value-added tax (VAT). Order Management shows VAT or sales tax information at the line item and order level based on the tax policy. Configure the policy in merchant price books in B2C Commerce. The tax policy determines whether product and service prices are treated as net or gross prices. See VAT and gross tax policy.
Net is the price of the item excluding tax. Net is for sites using sales tax in countries such as the United States. Tax amounts are considered separately from line item prices and order subtotals.
For orders using the net tax policy, the elements are as follows:
- At the item level:
- quantity
- unit price: net price without taxes
- price adjustment for the item
- tax: item tax
- extended price: (quantity * unit price) + item price adjustment
- At the order level:
- subtotal: total price of all items including price adjustments, but without tax, shipping or handling
- price adjustment: total order-level price adjustment amount
- shipping: total shipping amount, without taxes
- handling: total handling amount, without taxes
- tax: total amount of taxes (item + shipping + handling)
- total: subtotal extended price + total order price adjustments + total shipping + total handling + total taxes
At the item level, net tax appears as a positive value for the item, and a negative value for a discount. For example, An item has a $29.99 unit price. The tax appears as $9.18, and a discount of $12.00 appears as ($12.00), where parentheses indicate a negative value. The summary section shows the tax, separate from the item cost, as $7.90.
) to the left
of the Price Adj. field to display price adjustment details (Description, Unit Price, Tax,
Ext. price, Promo Code, Promo Label).