Why would I need to manually set up a tax rate?
For example, your marketplace is operating in the US and you don't usually pay sales taxes to your US vendors. However, you now have new UK vendors and it is required for you to add a tax rate because some countries like the UK require the VAT to be broken down into a separate line item and display it on the invoice.
How to set this up
1- Go to Setup > Tax Rates under the Payments & Accounting Section
2- Create a new tax rate
3- Go to Contacts > Dropship Providers > (choose vendor) > Tax tab
4- Under the section "Calculating tax on dropship purchase orders", choose manual
5- Add the tax rate you created to this vendor and save
👉 You may need to disable the setting "All taxes are included in my price".
If enabled, what this will do is reverse the VAT, so if the cost price is £100, turning this on would turn the price of the item into £83 and add £17 of tax.
If turned off, if the cost price is £100 + 20% VAT, the total cost of the item will be £120.