A tax is a single, reusable rate definition — VAT, sales tax, service charge, excise, customs, or another type — calculated either as a percentage or as a flat amount, purely for classification and reporting. A product is never assigned a tax directly; instead it points at a tax group, a named bundle that can combine several taxes under one label, such as "Standard Sale Tax" made up of VAT plus a service charge.
How it applies at checkout
Every tax can optionally be restricted to a specific geographic zone, so a rate only applies to sales in the region it's meant for. At checkout, each line's tax is calculated from its product's tax group, in the branch's own currency — unless the customer on the order is marked tax-exempt, in which case every line of that order skips tax entirely, without touching the products' own tax setup for anyone else.
- Create named tax rates with a percentage or fixed-amount calculation method
- Bundle multiple taxes into a single named tax group a product selects
- Restrict any tax to a chosen geographic zone, or leave it applying everywhere
- Leave a product's tax group unset to make it fully tax-exempt
- Mark an individual customer as tax-exempt to skip tax on their entire order