Skip to content

Taxes & Duties

Taxes and duties settings let you control where taxes are collected, how they are calculated, and how they are displayed to customers during checkout.
Correct tax configuration helps you stay compliant and ensures transparent pricing for buyers.

Overview

From this section, you can:

  • Select the countries or regions where you collect taxes
  • Configure how taxes are calculated and displayed
  • Apply tax rules to shipping and digital products
  • Control tax visibility at checkout

⚠️ Tax rules vary by country. If you’re unsure about your obligations, consult a qualified tax professional.

Countries & Regions

This section defines where your store collects taxes and duties.

How it works

  • Each country or region represents a tax collection area
  • Taxes are applied based on the customer’s delivery location
  • Countries are typically added through shipping zones

Example countries

  • India
  • Israel
  • Afghanistan
  • Albania

You can add or remove countries as your business expands into new markets.

Tax Calculations

Tax calculation settings control how taxes are applied and shown in your storefront.

All prices include tax

When enabled: - Product prices are displayed inclusive of tax - Taxes on shipping rates are included in the shipping price - Customers see a final, tax-inclusive price upfront

Recommended for regions where inclusive pricing is standard (e.g. India, EU).

Show taxes

When enabled: - Taxes are clearly shown during checkout - Customers can see the tax amount before payment - Improves pricing transparency and trust

Disabling this hides tax line items from checkout.

Charge tax on shipping rates

When enabled: - Taxes are applied to shipping charges - Shipping costs follow the same tax rules as products

This is required in many regions where shipping is taxable.

Charge VAT on digital goods

When enabled: - VAT is automatically applied to eligible digital products - Supports region-specific VAT rules (such as EU digital VAT) - VAT is calculated at checkout based on customer location

This setting is recommended if you sell digital products to European customers.

Saving Changes

Click Save after making changes to apply updated tax rules to your store.
Tax settings apply immediately to new orders.

Best Practices

  • Review tax settings before going live
  • Keep inclusive pricing consistent across your storefront
  • Enable tax visibility for better customer transparency
  • Revisit tax rules when entering new countries or regions
  • Use shipping zones to manage regional tax scope effectively

Common Issues & Fixes

Taxes not applied at checkout - Ensure the customer’s country is listed under Countries & Regions - Verify tax calculation options are enabled

Incorrect tax amounts - Review whether prices are inclusive or exclusive of tax - Check shipping tax settings

Digital product VAT not applied - Ensure VAT on digital goods is enabled - Confirm the customer’s region requires VAT

Next Steps

  • Configure Shipping & Delivery
  • Review Checkout Settings
  • Set up Markets for region-specific pricing

Accurate tax settings help ensure compliance and a smooth checkout experience.