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Setup Product Tax Categories

Updated
The Goal: Define the categories of taxable products in your database so you can apply tax to the right goods and services.

Before You Begin:

  • You need staff permissions to access billing and tax settings.
  • Setting up taxes is a multistep process. If any of your goods/services are taxable, you will need to configure each of the following, in order:
    1. Setup Product Tax Categories
    2. Setup Tax Regions
    3. Setup Tax Rules
    4. Setup Tax Rates
    5. Setup Tax Sets
  • This article covers the first step: Product Tax Categories, where you define the categories of products that are taxable. For example, if you are using the store module and are required to collect tax on certain products, you could set up the tax categories based on your store product categories (i.e. apparel, gifts, etc.). 

Step-by-Step Instructions

  1. Go to Finance, Tax Settings section, click Product Tax Categories.

  2. Click the Add button.
  3. Enter a Name for the category.
  4. Click Done to finalize the category.

The next step is to set up your tax regions.

Common Pitfalls

  • Stopping after this step: Product Tax Categories are only the first part of tax setup. Tax will not calculate until you also configure your tax regions, rules, rates, and sets.

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