Charge the Right Tax in Every Country You Sell To

You can now create Tax Zones under Manual Taxes and apply your own tax rates based on the customer's country or state. This means a buyer in Kenya and a buyer in Canada can each be charged the correct rate at checkout, without you maintaining one messy list of rates that applies to everyone. Tax settings are also now split into clearer sections so you can see exactly what is being applied and why.

What is a Tax Zone?

A Tax Zone is a named group of countries and states that share the same manual tax treatment. You give the zone a recognisable name, add the regions it covers, then attach the tax rates that customers in that zone should be charged. A country or state can belong to only one zone at a time, so two zones can never fight over the same buyer.

For example, you can create a Canada Tax Zone containing the relevant Canadian regions, then attach the manual tax rates you want Canadian customers to pay.

How do I set up a Tax Zone?

You create the zone, choose its regions, then attach existing manual tax rates to it. Each zone holds up to 10 tax rates, and you can add or remove rates later as your obligations change.

1. Go to Payments, then Settings, then Taxes, then Manual Taxes.
2. Create a Tax Zone and give it a name that describes the region it covers.
3. Select the countries and states that belong to that zone.
4. Attach the manual tax rates you have already created to the zone.
5. Review the rates listed against the zone and save.

Which tax rate actually gets charged at checkout?

A rate is charged only when it is attached to both the product and the buyer's zone. That intersection is deliberate: it stops a rate meant for one region leaking onto a sale in another. If a rate sits on the product but not on the zone, it is not applied to that buyer.

• If the buyer's region is not covered by any zone, all rates attached to the product apply without filtering.
• If a zone exists but has no rates attached, customers in that zone are charged no tax.
• If you have not created any zones at all, your existing product tax rates behave exactly as they do today.
• Deleting a rate from a zone removes it from that zone only. The rate itself stays in your list.

What happens if I also use Automatic Taxes?

Automatic Taxes take priority whenever they are available for the buyer's country and the product being sold. Your manual rates and zone rules act as the fallback and apply only when Automatic Taxes are switched off or unavailable for that combination. You do not have to choose one system exclusively, which makes zones useful for covering the regions automatic tax does not reach.

Where are my tax settings now?

Tax settings are organised into three dedicated areas so each decision lives in one place. Display settings control whether your listed prices include or exclude tax. Automatic Taxes holds your tax categories and nexus. Manual Taxes holds your own rates and the zones that group them.

You will find all of this under Payments, then Settings, then Taxes, then Manual Taxes.