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Business Plan: How to Manage Taxes in the Online Store
Business Plan: How to Manage Taxes in the Online Store

Learn about manual tax management in your online store created with Zyro website builder

Updated over a week ago

In your online store, taxes are managed manually: simply create multiple tax zones with individual tax rates. Here are some things to keep in mind:

  • Taxes are included in the total order price and apply to the whole cart (products + shipping)

  • To calculate the unit tax, the following formula is used:
    Unit tax = (tax rate × unit price) / (1 + tax rate) example

  • The same taxes apply to all product types

  • Taxes are displayed in the checkout, invoices, and order confirmation emails

  • If your customer's country is outside your tax zone, no tax is applied

Set Up Manual Taxes

1. In the store management area, go to Store settings → Taxes and click Add region:

2. Name the tax region (e.g., Sweden) and assign countries (e.g., Sweden).

3. Name the tax (e.g., VAT) and specify the tax rate (e.g., 25%).

4. Save the changes.

This way, you can add as many tax regions as you need. You may also edit or delete them when necessary.


Example

The unit tax is calculated using this formula:

Unit tax = (tax rate × unit price) / (1 + tax rate)

If your product costs €2 and the tax rate is 21%, the unit tax is €0.35*, because:

0.35 = (21% × 2) / (1 + 21%)

*The tax is rounded to 0.35 because the euro is a two-decimal currency

If your customer purchases three such products:

  • The total price is €6

  • Subtotal: €4.95

  • Taxes: €1.05

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