Tax Handling PRO

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 → Global Transfer Settings.

Enabling tax transfers#

On Split Pay → Global Transfer Settings, check the box labeled Transfer [mode] Tax for each product to Connected Accounts. and choose All (100%) or Partial in the dropdown inside that label. Then click Save Changes. Leave the box unchecked to keep the default Disabled mode.

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.

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.

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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:

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:

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

Total tax transferred: $1.00 + $2.50 + $1.50 = $5.00 (50% of tax)

Platform keeps: $5.00 in tax

Mode comparison#