Enabling automatic tax calculation
Automatic tax calculation is available for merchants based in the US, Canada, Australia, and Europe.
Setting up automatic tax calculation is easy:
1. Make sure your company address is correct. You can find it in your Store Profile under General settings.
2. Head to tax settings by clicking on General settings, and then choose Taxes.
3. Enable automatic taxes.
Tip: If you don't charge tax for some of your products, you need to set up manual taxes for your store.
Setting up taxes manually
1. Head to tax settings by clicking on General settings, and then choose Taxes.
2. Under Manual tax settings, click on Manage Tax Rates.
3. Click on Add New Tax and define the settings. If you want to add different tax rates per destination, add individual shipping zones by clicking on Specify rates per zone. You can manage your destination zones by clicking on the Manage zones link. Don't forget to Save your changes.
Handling tax-exempt customers
Sometimes, your customers could be exempt from paying taxes – they might be non-profit organizations or wholesalers.
You can mark these kinds of buyers as non-taxable like this:
1. Go to My Sales settings and click on Customers.
2. Click on the pencil icon to edit the customer you want to mark as non-taxable.
3. Enable tax-exemption for the user and save your changes.
Tip: Make sure your non-taxable customers have signed in at the checkout before placing their order – otherwise they will be taxed as per the standard taxation rules configured in your store.