Tax zones
Dave Quested avatar
Written by Dave Quested
Updated over a week ago

Tax zones determine the tax rates applied for any country/state you want to sell to.

You must add a tax zone for every country you want to sell to.

You can add a tax zone without a country which serves as a fallback for anywhere in the world.

If you set the tax rate to be 0%, any items shipped to that tax zone will be zero-rated (no tax applies), use this for exports.

When you sign up for Airsquare, we set up some initial tax zones for you based on where you sign up from. You should review these and ensure they are correct before going live.

How is tax calculated?

In order to match how Xero works, we calculate tax on a per line item basis. The tax for each line item is rounded to 2 decimal places. We then add all the tax for each line item and that gives the total tax owing.

How do I determine tax inclusivity on my pricing?

This is done through pricing tiers.

How do I add a tax zone?

  1. Go to Commerce > Tax zones.

  2. Click Add.

  3. Optionally select a Country to which this tax zone applies. If you leave the country blank, it serves as a fallback for anywhere in the world. This allows you to support any country and also apply 0% tax on exports.

  4. If you've selected USA/Canada, you can optionally choose a State to create a state specific tax zone. Otherwise it applies to the entire country.

  5. Enter a Standard tax rate, for exports, enter 0%.

  6. Enter a Reduced tax rate, for exports, enter 0%. If you don't have the need for a reduced rate, just make it the same as the standard rate.

  7. If you have Xero connected, you'll see options here to select the corresponding tax rates from your accounts for the standard/reduced rates. Great for identifying zero-rated exports.

  8. Click Add.

How do I edit a tax zone?

  1. Go to Commerce > Tax zones.

  2. Next to the tax zone, click Edit.

  3. Change the details for the tax zone.

  4. Click Update.

How do I delete a tax zone?

  1. Go to Commerce > Tax zones.

  2. Next to the tax zone, click Delete.

  3. Click Delete.

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