Payments

Managing Taxes

Configure tax rates, VAT settings, and tax-exempt products.

6 min read7,650 viewsUpdated October 30, 2024Sarah Chen

Managing Taxes

Stay compliant with automatic tax calculations.

Tax Overview

Navigate to Settings > Taxes to configure.

Automatic Tax Calculation

Enabling 1. Go to tax settings 2. Enable **Automatic Tax Calculation** 3. Select your tax registration regions 4. Save

How It Works - Detects customer location - Applies correct tax rate - Handles regional differences - Updates with rate changes

Manual Tax Setup

Creating Tax Rates 1. Click **Add Tax Rate** 2. Select region/country 3. Enter tax percentage 4. Name the rate 5. Save

Example Rates | Region | Rate | Name | |--------|------|------| | UK | 20% | VAT | | Germany | 19% | MwSt | | France | 20% | TVA | | US (varies) | 0-10% | Sales Tax |

VAT Settings (UK/EU)

VAT Registration 1. Enter VAT number 2. Enable VAT on invoices 3. Configure VAT display

VAT Display - Show prices including VAT (B2C) - Show prices excluding VAT (B2B) - Show both

EU VAT (OSS) For selling to EU customers: 1. Register for OSS 2. Enable EU tax calculation 3. System applies destination rates

Tax-Exempt Products

  • Some products may be exempt:
  • Children's clothing (UK)
  • Food items
  • Educational materials

Setting Exemption 1. Edit product 2. Uncheck **Charge tax** 3. Save

Tax Reports

  • Generate for filing:
  • Go to **Reports > Tax**
  • Select date range
  • Export report
  • File with authorities

Tax Tips

  • Consult an accountant
  • Keep accurate records
  • Update rates promptly
  • Review exemptions
  • Export reports regularly

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