When it comes to VAT/GST/Sales tax, most businesses only need to apply a simple tax calculation. They charge a standard rate of tax to orders being shipped to the country/state they have a presence in, or they charge 0% as goods are classed as 'exported'.

Some businesses however have reduced rates & tax exemptions to deal with, or may not even be GST/VAT registered (and therefore don't charge tax).

To cater for these businesses, we now support: no tax, tax exempt, zero-rated, standard rate and reduced rate. We call these Tax Types.

You can now assign different tax types to different products, sub products and shipping.

When setting up your tax zones, you now have the ability to set both a standard tax rate and reduced tax rate. 

Then, when a customer adds items to their cart, we calculate tax per line item, as each item might have a different tax type applied.

We've fully integrated tax types into our Xero integration too. When connecting Xero, you can choose which tax rate applies to which tax type. These are set per tax zone, giving you complete flexibility.

Read more about taxes