Taxes & Duties¶
The Taxes & Duties section allows you to manage where and how taxes are collected in your store. This ensures compliance with regional tax regulations and provides transparency to customers during checkout.
Countries / Regions¶
This section defines where you collect taxes and duties.
What you can do¶
- View the list of countries/regions where tax rules are applied
- Control tax obligations based on shipping destinations
- Add new regions indirectly by creating shipping zones
Important note¶
If you’re unsure about tax obligations in a country or region, consult a qualified tax professional before enabling or modifying tax settings.
Tax Calculations¶
Control how taxes are calculated and displayed across your store and checkout.
All prices include tax¶
- Product prices entered in the admin already include tax
- Shipping taxes are included directly in shipping prices
- Commonly used in VAT-inclusive pricing regions
Show taxes¶
- Displays tax amounts clearly during checkout
- Improves transparency for customers
- Recommended for compliance and trust
Charge tax on shipping rates¶
- Applies applicable tax to shipping charges
- Useful where shipping fees are taxable (e.g. GST/VAT regions)
VAT on Digital Goods¶
Charge VAT on digital goods¶
- Enables VAT for digital products
- Automatically applies VAT at checkout for eligible regions
- Especially relevant for European customers
When enabled: - A digital product range is created - VAT is calculated based on customer location
How Taxes Are Applied¶
Taxes are calculated based on: - Customer’s shipping country/region - Product type (physical or digital) - Shipping charges (if enabled) - Store’s tax configuration
Taxes are reflected in: - Product prices - Shipping charges - Order summary at checkout - Final invoice or receipt
Best Practices¶
- Always configure taxes before going live
- Match pricing strategy (tax-inclusive vs tax-exclusive) to your market
- Enable tax display for transparency
- Review shipping tax rules carefully
- Revisit tax settings when expanding to new countries
Troubleshooting¶
Taxes not appearing at checkout¶
- Ensure Show taxes is enabled
- Confirm the customer’s region is listed under Countries/Regions
- Check if products are taxable
Incorrect tax amounts¶
- Verify whether prices are tax-inclusive
- Review shipping tax settings
- Check region-specific tax rules
Summary¶
The Taxes & Duties system helps you: - Stay compliant with regional tax laws - Accurately calculate and display taxes - Handle VAT for digital goods - Provide a clear and trustworthy checkout experience
Correct tax configuration is essential for legal compliance and customer confidence.