If you're encountering discrepancies in tax calculations between orders created in WooCommerce and those synced through MConnect from Marketplacer, this article outlines the likely cause and how to address it.
Understanding tax settings in WooCommerce
WooCommerce offers a feature called "Enable tax rates and calculations" which, when enabled, allows the platform to calculate tax automatically on orders.
How this impacts MConnect Integration
When invoices are created via MConnect, WooCommerce automatically calculates the tax for products based on its internal tax rate settings. However, WooCommerce does not provide a mechanism to manually submit or override the tax amount paid for a product on an order.
Postage fees are treated differently. By default, Marketplacer sends the postage amount inclusive of tax to WooCommerce. You can configure whether you want postage fees to include or exclude tax within your MConnect settings panel, to better align with your store’s tax setting.
Potential for discrepancies
This can lead to discrepancies if:
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The tax rates configured in WooCommerce differ from those set in your Marketplacer account.
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You operate in a region with complex or dynamic tax rules.
As a result, the total tax paid reported in WooCommerce invoices may not match the tax recorded in Marketplacer invoices.
When this matters
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Minimal impact: For most regions (e.g., Australia, UK, Europe), where product pricing includes tax (VAT or GST) and tax rates are straightforward, discrepancies are typically negligible.
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Higher risk of mismatches: In the United States, where tax is calculated dynamically during checkout and varies by location, the likelihood of mismatched tax reporting is higher if WooCommerce's tax tables aren't meticulously configured.
Recommended actions
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Enable tax in WooCommerce: Ensure the “Enable tax rates and calculations” setting is turned on (
WooCommerce > Settings > General). -
Sync or match tax rates: Manually align the tax rates in WooCommerce to match those used by Marketplacer where possible.
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Monitor invoices: Regularly compare WooCommerce and Marketplacer invoices to identify and resolve any tax mismatches.
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Consult a tax advisor: If you're operating in a complex tax region, consider consulting a tax professional to ensure compliance and accurate reporting.
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