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.

Ready to Launch Your Dream Store?

Start your 14-day free trial today. No credit card required, no setup fees, cancel anytime.

🔥 Limited Time: Free setup worth $200

14-day free trial

No credit card required

30-day money-back guarantee

Cancel anytime

Table of Contents

What's in this section

Understanding eCommerce Tax Management

1. Tax Configuration Basics

2. Creating Tax Rates

3. Tax Display Options

4. Tax Compliance Considerations

Best Practices for Tax Management

Your Progress

Quick Links

Related Guides

Creating Tax Rates

Shipping Integrations

📈 Marketing

Marketing & SEO

Enterprise Security

Store Building

Graphics & Appearance

Templates

Build My Website ✅

Mobile Commerce

Social Commerce

Integrations

Inventory Management

Payment Methods

Ready to Launch Your Dream Store?