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