Tax Rules
Managing tax classes, rates, zones, and rules
Last updated: Feb 09, 2026
Tax Rules
Manage tax classes, rates, zones, and rules for tax calculation.
Tax Classes
Define categories of tax treatment applied to products.
| Column | Description |
|---|---|
| Name | Class name |
| Code | Unique code |
| Description | Class description |
| Default | Whether this is the default class |
Pre-configured Classes
| Class | Description |
|---|---|
| Digital Goods | For digital/downloadable products |
| Reduced Rate | For products eligible for reduced tax rates |
| Standard Rate | Default tax class for most products |
| Zero Rate | For tax-exempt products |
Tax Rates
Define specific tax percentages.
| Column | Description |
|---|---|
| Name | Rate name |
| Code | Unique code |
| Rate | Tax percentage |
| Priority | Processing order |
| Compound | Whether this rate compounds on top of other rates |
| Status | Active or Inactive |
Pre-configured Rates
| Rate | Percentage |
|---|---|
| GST (Generic) | 10% |
| GST India | 18% |
| US Sales Tax | 8.25% |
| VAT Reduced | 5% |
| VAT Standard | 20% |
Tax Zones
Geographic regions where specific tax rates apply.
| Column | Description |
|---|---|
| Name | Zone name |
| Code | Zone code |
| Description | Zone description |
| Locations | Countries/regions in the zone |
| Status | Active or Inactive |
Creating a Tax Rule
Tax rules connect tax classes, zones, and rates together.
| Field | Required | Description |
|---|---|---|
| Rule Name | ✅ | Descriptive name for the rule |
| Tax Class | ✅ | Which tax class this rule applies to (select) |
| Tax Zone | ✅ | Which geographic zone this rule applies to (select) |
| Tax Rate | ✅ | Which tax rate to apply (select) |
| Priority | Rule priority (lower = evaluated first) | |
| Include Shipping | Toggle — whether to charge tax on shipping costs | |
| Active Status | Toggle to enable/disable the rule |
Example: To charge 18% GST on standard-rate products sold in India: create a rule with Tax Class = "Standard Rate", Tax Zone = "India", Tax Rate = "GST India 18%".
