How to set up taxes for different territories

By default territory taxes are turned off until you turn them on. When you create territory taxes and assign them, customers will have that tax automatically applied based on their shipping location. This means all future orders created by that customer will have that tax auto populate on the order depending on which territory their shipping destination is in.

• A territory tax is added to an order based on the customer's location
• Taxes update when shipping addresses are set
• Taxes can be assigned at the customer or catalog level (you can choose how to manage this)
• If the buyer's location isn't included in a taxed territory no tax will be added
• If you have other tax rates set up they will be reset to the new territory tax settings

To set up territory taxes head to the Settings>Taxes & Territories page in your account.

Step 1

First, enter the name and percentage of the tax in the Tax Name fields then click the Add Tax button:

Step 2

Next, in the New Territory field, type in the name of the territory and then click the Add New Territory button:

Step 3

Next, click on the Add Zone button and fill in the fields on the next screen:

In the image below is an example of an account with Canadian taxes set up by territory:

Once you have territory taxes set up you can then assign them to specific customers on their individual Customer Details pages:

Or you can assign territory taxes at the catalog level. This will mean anyone ordering from that catalog will be assigned a tax: