You can configure how taxes will be applied to your store.
Before proceeding, please review the guides below for each settings field and instructions on how to set taxes by country.
Tax settings
Countries/regions
- You can manage the countries or regions where taxes are applied.
- To add a new country, click Add country.
- Taxes are calculated based on the customer’s shipping address.
- If the country in the shipping address does not match any of the countries configured in your tax settings, the tax settings for Rest of world will be applied.
General settings
Include tax in prices
- You can choose whether product prices displayed in your store include tax.
- If you select Yes, product prices will be treated as tax-inclusive.
- If you select No, tax will be added on top of the product price during checkout.
- This setting can be configured separately for each multi-language store.
Setting taxes by country
Country tax
- Select the country where taxes will be applied, and enter the default tax rate in the Country tax field.
- You can define how tax will appear in your store using the Mark tax as field. Enter a clear label that will be shown to customers.
- If the selected country has regions, a list of those regions will appear so you can configure taxes separately by region.
Regions
- If you select a country with regions, you can set the Regional tax, Mark tax as, and Taxation method for each region.
- Use the Regional tax field to specify tax rates by region. For how Taxation method works, see below.
Info
Taxation method options
- Replaces country tax: Only the regional tax will apply. The country tax will not be applied.
- Added to country tax: Both the country and regional tax will be applied together.
- Compounded on top of country tax: The regional tax will be calculated based on the subtotal that includes the country tax.
General settings
Calculate taxes based on
- Choose how taxes should be calculated.
- If you select Order, taxes will be calculated once for the total amount of products that share the same rate.
- If you select Item, taxes will be calculated individually for each product.
Caution
Depending on the selected calculation method, the amount to which rounding is applied may differ, which can result in differences in the total tax charged.
Tax shipping charges
- Choose whether to apply tax to shipping fees.
- If you select Yes, taxes will be applied to shipping fees.
- If you select No, shipping fees will be tax-exempt.
Tax overrides
You can exempt certain products from tax or apply special tax rates based on specific product categories or shipping destinations.
Products
- For certain product categories (e.g., food), you can either exempt them from tax or apply a lower tax rate instead of the default rate.
Shipping
- For certain regions, you can exempt shipping fees from tax or apply a reduced tax rate.
For example, you may choose not to tax shipping fees for specific areas.