2. Set up Tax Settings in Magento backend

If you want to apply tax to surcharges, you need to configure this under System > Configuration > Tax before configuring the main Fooman Surcharge settings.

If you do not want to apply tax to surcharges, you don't need to do anything.

Tax Class for Surcharge (v1.1.7+)

Choose which tax class you want to apply to surcharges (if any):

  • Dominant tax rate (this will tally up all existing tax rates of products in the basket, and assign the dominant tax rate to the surcharge)
  • The other options will populate automatically using the tax rates you have configured on your Magento store

Surcharge Prices (v1.1.7+)

Set whether the surcharge amounts entered during set up should include or exclude tax. This setting only has effect when “Tax Class for Surcharge” (above) is applied.

Example 1: 'Fixed Transaction Cost' surcharge of $10 and tax rate of 10%:

  • Including tax: Surcharge = $9.09, surcharge tax = $0.91, giving a total of $10
  • Excluding tax: Surcharge = $10, surcharge tax = $1, giving a total of $11

Example 2: 'Payment Surcharge %' of 2.5% on a purchase amount of $100, with a tax rate of 10%:

  • Including tax: Surcharge = $2.27, surcharge tax = $0.23, giving a total of $2.50
  • Excluding tax: Surcharge = $2.50, surcharge tax = $0.25, giving a total of $2.75

Display Surcharge Prices (v2.0.8+)

Set whether surcharges should be displayed:

  • Excluding Tax
  • Including Tax
  • Including and Excluding Tax

Configure this for:

  • Shopping Cart Display Settings
  • Orders, Invoices, Credit Memos Display Setting

NEXT STEP: CONFIGURE ALL SURCHARGES SETTINGS

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