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Taxes

This section covers everything you need to know about setting up and managing taxes for your eCommerce store. Understanding and correctly implementing tax settings is crucial for staying compliant with regulations and providing a transparent shopping experience for your customers.

What's in this section​

  • Tax Rates - Learn how to create and manage tax rates for different countries and regions

Understanding eCommerce Tax Management​

Proper tax management is essential for legal compliance and transparent pricing. Here's a guide to approaching taxes in your eCommerce store:

1. Tax Configuration Basics​

Before setting up taxes, understand these key concepts:

  • Tax rates - The percentage of tax applied to transactions
  • Tax-inclusive vs. tax-exclusive pricing - Whether product prices include or exclude tax
  • Tax jurisdiction - Determining which tax rates apply based on customer location

2. Creating Tax Rates​

Set up tax rates for the regions where you sell:

  • Define tax rates for each country you serve
  • Configure region-specific rates where needed (states, provinces, etc.)
  • Determine what items are taxable (products only or products and shipping)

Learn more about creating tax rates.

3. Tax Display Options​

Configure how taxes are displayed to customers:

  • Decide whether to include taxes in product prices
  • Set up price rounding for tax-inclusive pricing
  • Provide clear tax information during checkout

4. Tax Compliance Considerations​

Understand your tax obligations:

  • Research tax requirements for each market where you sell
  • Determine registration requirements for different jurisdictions
  • Consider using tax compliance services for complex multi-region sales
note

eCommerce is not responsible for filing or submitting your sales taxes on your behalf. It's recommended to consult with a tax professional to ensure compliance with all applicable tax laws and regulations.

Best Practices for Tax Management​

  • Stay informed: Keep up with changes to tax legislation in your markets
  • Be transparent: Clearly display tax information to customers during the shopping experience
  • Maintain records: Keep detailed records of taxes collected for reporting purposes
  • Regular review: Periodically review your tax settings to ensure continued compliance
  • Seek professional advice: Consult with a tax professional for guidance specific to your business

By following these practices and properly configuring your tax settings, you'll ensure compliance with tax regulations and provide a transparent shopping experience for your customers.