When creating an online store with Hostinger Website Builder, taxes are managed manually by creating multiple tax zones with individual tax rates.
Important Notes
Here are some things to keep in mind:
Taxes are included in product prices
Taxes apply to the total price of the cart (products + shipping)
To calculate the unit tax, the following formula is used:
Unit tax = (tax rate×unit price) / (1 + tax rate) – see the exampleAll taxes apply to all products regardless of their type; it's not possible to apply a specific tax to a specific product
Taxes are displayed in the checkout, invoices, and order confirmation email
If your customer's country is outside your tax zone, no tax is applied
Set Up Manual Taxes
1. In the store management area, go to Store settings → Taxes and click Add region:
2. Name the tax region (e.g., Sweden) and assign countries (e.g., Sweden).
If your tax region is in the USA or Brazil, you may create different tax zones per each state:
3. Name the tax (e.g., VAT), and specify the tax rate (e.g., 25%).
4. Save the changes.
This way, you can add as many tax regions as you need. You may also edit or delete them when necessary.
Example
The unit tax is calculated using this formula:
Unit tax = (tax rate × unit price) / (1 + tax rate)
If your product costs €2 and the tax rate is 21%, the unit tax is €0.35*, because:
0.35 = (21% × 2) / (1 + 21%)
*The tax is rounded to 0.35 because the euro is a two-decimal currency
If your customer purchases three such products:
Total: €6
Subtotal: €4.95
Taxes: €1.05
Now you know how to manage taxes in your online store created with Hostinger Website Builder 🎉