Tax Settings

Configure tax calculation rules, classes, zones, and percentage rates. The tab is split into four sub-sections: Options, Classes, Zones, and Rates.

Location: Settings > Tax

Options

Field	Description	Default
enable_tax	Master toggle that activates tax calculation everywhere	Off
prices_include_tax	Treat catalog prices as tax-inclusive	Off
calculate_tax_based_on	Address used for rate lookup: shipping, billing, or shop	shipping
display_prices_in_shop	Show shop prices incl or excl tax	excl
display_prices_during_cart_checkout	Show cart and checkout prices incl or excl tax	excl
display_tax_totals	Render tax totals as a single line or itemized per rate	itemized
price_display_suffix	Optional text rendered after prices, for example "incl. VAT"	empty
shipping_tax_class	Tax class assigned to shipping line items	empty (inherits item rate)
rounding	Round tax at the subtotal level instead of per-line	Off

Inclusive vs Exclusive Example

With prices_include_tax = false:

Product price: $10.00
Tax (10%):     $1.00
Cart total:    $11.00

With prices_include_tax = true:

Product price (inclusive): $11.00
Tax extracted (10%):       $1.00
Net subtotal:              $10.00

Classes

The Classes sub-tab lists tax classes managed through the tax service. Each class has a display name and an auto-generated slug. Use classes to group products that share a tax treatment (Standard, Reduced, Zero, Digital, etc.). Assign a class on the product edit screen.

Operations available in the panel:

• Add a class by typing a name and pressing Enter.
• Rename a class inline.
• Delete a class. Deleting a class also removes the tax rates associated with it.

Zones

The Zones sub-tab lists tax zones with an expandable location editor. A zone has a name, an enabled toggle, and a list of locations. Countries are the primary location type; states and postcodes are stored on the underlying model but the inline editor focuses on country selection.

Operations:

• Add zones by name.
• Toggle each zone enabled / disabled.
• Expand a zone to add or remove country locations.
• Delete a zone, which removes the location mappings stored against it.

Rates

The Rates sub-tab lists tax rates with country and class filters and Import / Export buttons. Each rate has the fields below:

Field	Description
Country	ISO country code (required)
State	State or province code (optional, blank means "any state")
Postcode	ZIP or postcode pattern (optional, supports wildcards like 90*)
Tax Class	Class the rate applies to (required)
Rate (%)	Tax percentage with up to four decimal places
Name	Display label used on invoices and emails (required)
Priority	Order of evaluation when multiple rates apply
Compound	Apply on top of previously applied rates instead of the subtotal
Apply to shipping	Whether the rate is added to shipping line totals

Common Scenarios

US Sales Tax

• calculate_tax_based_on: shipping
• prices_include_tax: off
• One rate per state (or per state + postcode pattern where local tax differs)

EU VAT (B2C)

• calculate_tax_based_on: billing
• prices_include_tax: on
• price_display_suffix: incl. VAT
• One rate per EU member state

Tax Disabled

• enable_tax: off, or define a Zero tax class and assign it to all products.

Related Settings

• General Settings for the shop base address
• Invoice Settings for how tax is rendered on invoices