Tax classes and tax rates. Manage and create new ones
Settings -> Taxes
Tax classes are used to assign special tax rates to groups of products. Tax classes are different for their rates and calculation rules.
The tax classes of your store depend on the type of products you are selling. You can create a tax class, and add specific rate and geo zone for calculations for each created class.
Note: it's better to create geo zones beforehand. You can save tax class and create geo zone later, but when you add tax rate for that created tax class, you have option only to choose from the created geo zones. While you can save the tax class and create geo zone later, for the better flow, create beforehand.
You can add tax rate, edit, or delete a tax class by clicking on the three dots
Click on the "Create tax class" button:
Here, you need to write specific title (only you can see this) and calculation method. Tax class title will be displayed when taxes are added to the total order:
Tax rate will be based on customers' shipping address.
Tax rate will be based on your store's registered address.
Tax rate will be based on customer's billing address.
Click on the add rate hyper link or Add tax rate from the three dots
On the opened window:
- 1.Write a tax rate name;
- 2.Select a geo zone that this tax rate will be applied to;
- 3.Choose a tax type from the dropdown menu: percentage or fixed amount;
- 4.Write down a tax amount;
- 5.Click on the "Save" button.