Tax zones

Tax zones are a way to group countries for tax purposes. A zone can include one or multiple countries; an example is 'Europe (EU)' which could include all member states of the European Union.

Optionally, a tax code can be assigned to a zone. In VAT mode accounts, the zone then influences which tax code is automatically assigned to downloaded sales orders based their the delivery address country. The tax zone's tax code is only used where the customer record does not have a default tax code assigned. If a zone does not have a tax code, then the product's tax code is used instead.

Tax rules are discussed in more detail here.

How to add a tax zone:

  1. Go to Settings > Tax > Tax zones
  2. Click the Add tax zone button
  3. Enter a name for the tax zone
  4. Select a tax code applicable to this tax zone. If no tax code is assigned to the zone the product tax code will be used on transactions (VAT mode only)
  5. Click the Save button

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How to assign a country to a tax zone:

  1. Go to Settings > Localization > Countries
  2. Click to edit button next to the relevant country
  3. Select the tax zone applicable to this country
  4. Click the Save button

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