Creating a new tax rule

As an online merchant, it is important for you to collect taxes from your customers. The specific type of tax (such as sales tax in US, VAT in EU, or GST in Australia) will depend on the customer's location. You will need to periodically send the collected tax amounts to the relevant tax authorities.

To ensure accurate tax calculations, you can assign an existing tax rule to each product you sell. These tax rules help determine the correct tax amount based on the customer's region. You have the option to manually set up your online store's configuration so that it can calculate tax rates for different regions, zones, and countries.

Navigate to Products -> Tax Rules

Select New tax rule

To create a new tax rule, you must type in the following information for the tax rule:

Tax rule display name: this is the name of the tax that is visible in the checkout

Tax rule (internal) name: this is the internal name for the tax rule

Rate: tax rate

Country: country where this tax rule should be applied. 
State/Region: If this rule is applied only within certain state, please select it here 
Postal code, from & to: If this tax rule is applied to specific postal code zones, please specify the zone using postal code range. If your tax rule only applies to one specific postal code, e.g 90210, then put 9021 to both from and to fields.

Once you're done, click Create.

In order to sell the product to the desired countries / regions, you need to assign correspondent tax rules to each product.

To assign a tax rule to a product, navigate to a product you want to assign a tax rule to and select Add rule from the Tax rules section

From the list, select the tax rule(s) you want to assign to this product.

Once you have selected the rules, the assigned rules appear in the Tax rules list.

To Remove a tax rule from a product, click the three dots and "Remove".

Please note: This doesn't delete the tax rule, but removes the tax rule from the specific product it was assigned to.