Tax - Categories

Each type of tax used in your store (for example, state, provincial, or federal) should have its own category. Each tax category must be one of two types: sales tax or shipping tax. Use this page to create tax categories for your store.

Before you set up tax categories, contact your taxation agency for specific tax regulations.

New tax category
Type the name of the tax category. This field accepts up to 25 alphanumeric characters.
Sales tax
Select the Sales tax radio button, if the new category is for sales taxes.
Shipping tax
Select the Shipping tax radio button, if the new category is for shipping taxes.
Include tax in display price
Select the Include tax in display price check box if you do not want to display the tax amount separately.
Add
After typing a new name in the New tax category field, click Add to add the new category to the Defined tax categories list.

Be careful when choosing the name of your tax category. You can remove the type if it has not been assigned to any products, but you cannot change its name.

Defined tax categories
This list displays all tax categories that have been created. These categories are used in the Rates page.
Remove
Click to remove selected tax categories from the Defined tax categories list.