Tax Handling PRO
Configure how WooCommerce tax amounts are handled during transfers — keep all taxes, transfer 100% proportionally, or split taxes using product transfer percentages.
Overview#
When your WooCommerce store collects taxes, you need to decide how those tax amounts get handled during transfers. Split Pay gives you three options for tax distribution, configured in Split Pay → Main (top-level menu, added in 3.7.0).
Tax transfer modes#
Disabled (default)
Tax amounts are not included in any transfers. Your platform keeps 100% of the collected tax. This is the default behavior and the simplest option — useful when your platform is responsible for remitting all sales tax.
If you're unsure which mode to use, start with Disabled. You can change it later without affecting past transfers.
All (100% tax transfer)
The entire tax amount for each line item is transferred to the connected account, distributed proportionally based on each account's share of the product transfers. This mode is useful when vendors are responsible for collecting and remitting their own taxes.
Partial (proportional tax transfer)
Tax amounts are split using the same percentages as the product transfers. If a product's transfer is 25% of the product price, then 25% of that product's tax is also transferred. This keeps the tax split in line with the revenue split.
Detailed examples#
Consider the following setup for both examples below:
- Product price: $100.00
- Tax rate: 10% → Tax amount = $10.00
- Connected accounts: 3 accounts with the following product-level transfer rules:
| Account | Transfer Type | Transfer Value | Product Transfer Amount |
|---|---|---|---|
| Account A | Percentage | 10% | $10.00 |
| Account B | Percentage | 25% | $25.00 |
| Account C | Fixed | $15.00 | $15.00 |
Total product transfers: $10.00 + $25.00 + $15.00 = $50.00
Example: all (100% tax transfer)
With the All mode, the entire $10.00 tax is distributed proportionally based on each account's share of the total product transfers.
Each account's share of the total product transfers:
- Account A: $10.00 / $50.00 = 20%
- Account B: $25.00 / $50.00 = 50%
- Account C: $15.00 / $50.00 = 30%
Apply those proportions to the $10.00 tax:
| Account | Product Transfer | Tax Share | Tax Transfer | Total Transfer |
|---|---|---|---|---|
| Account A | $10.00 | 20% | $2.00 | $12.00 |
| Account B | $25.00 | 50% | $5.00 | $30.00 |
| Account C | $15.00 | 30% | $3.00 | $18.00 |
Total tax transferred: $2.00 + $5.00 + $3.00 = $10.00 (100% of tax)
Platform keeps: $0.00 in tax
Example: partial (proportional tax transfer)
With the Partial mode, each account receives tax based on its own product transfer percentage, not its share of total transfers. Fixed-amount transfers are first converted to an effective percentage.
- Account A: 10% of product price → receives 10% of $10.00 tax = $1.00
- Account B: 25% of product price → receives 25% of $10.00 tax = $2.50
- Account C: $15.00 fixed = 15% effective → receives 15% of $10.00 tax = $1.50
| Account | Product Transfer | Effective % | Tax Transfer | Total Transfer |
|---|---|---|---|---|
| Account A | $10.00 | 10% | $1.00 | $11.00 |
| Account B | $25.00 | 25% | $2.50 | $27.50 |
| Account C | $15.00 | 15% | $1.50 | $16.50 |
Total tax transferred: $1.00 + $2.50 + $1.50 = $5.00 (50% of tax)
Platform keeps: $5.00 in tax
Important: Tax handling applies only to product line item taxes. Shipping taxes follow the shipping transfer rules and are not affected by this setting.
Mode comparison#
| Mode | Tax Transferred | Platform Keeps | Best For |
|---|---|---|---|
| Disabled | $0.00 | $10.00 (100%) | Platform handles all tax remittance |
| All | $10.00 | $0.00 (0%) | Vendors handle their own tax obligations |
| Partial | $5.00 | $5.00 (50%) | Shared tax responsibility |
Tax compliance: This plugin splits funds — it does not provide tax advice. Consult a tax professional to determine which mode is appropriate for your business and jurisdiction.