Last updated by UENI on 21st May 2020

Go to System > Localisation > Taxes in the Menu.

The Taxes section in Localisation allows the administrator to create the taxes that will be applied to specific products in the store.

The Tax Rate will be used to calculate the taxes from an order. The following information is needed to save a tax rate to the administration:

Tax Name	A name for the tax that will be displayed in the storefront when taxes are added to order total.
Tax Rate	A number value for the tax.
Type	Determines whether the number value in Tax Rate is a fixed amount or a percentage of the total amount of an order.
Customer Group	Selecting a customer group will add this tax to all the customers within this group. Multiple customer groups can be selected at once.
Geo Zone	Selecting a Geo Zone will apply the tax to the regions and countries within a Geo Zone.

Tax classes can store multiple tax rates into one category. The taxes can be customized to calculate the taxes based on the payment address (customer) or the store’s address. Tax classes require the following information:

Tax Class Title	Description of the class in which the tax is applicable. E.g. “Downloadable Products”
Description	Information about the tax
Tax Rate	Selecting “Add Rule” will add a tax rate that was created in Tax Rates. Base On requires either the payment address or the store address to be selected. This will determine the amount of tax added to the shopping cart total in the storefront. Priority determines the position of the tax rate if other tax rates are listed with it.

Notice:
Now you probably would like to set up taxes per zone. To understand how it works, follow this link to our guide.
How to create Taxes per Zone