Local sales taxation

Defining domestic tax rate

The Domestic sales tax rate (VAT, IVA, GST, sales tax) is the sales tax rate you normally charge when selling products in the country where your business is registered.

To enable tax calculation and invoicing for your local sales, you first need to set up your local sales tax details. Here’s how you can do it:

1. Go to Store -> Store settings in your main dashboard.
2. Open the Invoicing & Taxes tab.
3. Scroll down to the Local sales tax rate section.
4. Choose your Domestic sales tax rate from the list.

Here are the available options:

• None
• Exempt
• 23%
• 8%
• 5%
• 0%

If you choose to manage your billing via Stripe Tax or a third-party provider, we will ask you to also provide:

• Flat rate (optional).
• GTU code (optional) - Only applicable to certain countries - it can help us identify the tax rates applicable to different items under the Goods and Services Tax (GST) framework.

Note: We will assign these settings to all products you create, but you can later override local tax settings in your checkout to adjust it for each product individually.

To learn how to set up your international sales tax and billing, visit this page.