---
title: Tax Rate Setup
description: Need to set up sales tax? A consumption tax? Something else? No matter what your store's tax needs are, Volusion is here to meet them.
---
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# Tax Rate Setup
**Tax Rate Setup** Need to set up sales tax? A consumption tax? VAT? Something else? No matter what your store's tax needs are, Volusion is here to meet them. Just click **Settings** \> **Tax** on your dashboardto get started.
**U.S. Merchants**
### **Default Tax Rate**
If you want to change the default tax rate for your store -- which is set to the state you entered when purchasing your hosting plan -- just hit **No, I'll add a new rate in** the friendly little pop up that greets you the first time you visit the Tax page.
### **Automatic Tax Rate Info**
For the simplest setup, we recommend using the built-in [automatic tax rates feature](https://help.volusion.com/s/VolusionsAutomaticTaxFeature?hsLang=en-us).
### **Using Manual Tax Rates**
You can also manually configure your store's tax rate, or charge tax for multiple regions, postal codes or states. Just follow these steps:
1. Go to **Settings** \> **Tax**.
2. Click the three-dot actions menu icon.
3. Make sure **Are you based in the United States?** option is selected.
4. Select **Manually manage tax rates**.
5. Click **Save**.
You'll see one default tax setting already listed in the Tax table. Click **Edit** to change the details for this tax rate, or use the following instructions to add a new tax rate:
1. Click **Add**, and fill out the basic information about your state and zip code.
2. In the **Base Tax Title & Rate**fields, enter the tax rate title and the rate itself.
3. Clicking the checkbox labelled "Apply to non-taxable items and customers" will apply the tax rate to ALL items and customers. This setting may be required for certain taxing entities. We suggest consulting a tax professional to see if this setting is required for your business.
4. Click **Save**.
You can add as many states and rates as needed to meet your specific tax needs.
**For International Merchants**
1. Click **Settings \> Tax**.
2. If your store isn't based in the United States, be sure to (of course!) select **No** for **Are You Based in the United States?**
3. Once you select **No**, you'll see two drop-down menus for configuring types of VAT (Value Added Tax) and GST (Goods & Service) taxes, as well as tax on shipping. Choose your preferences, then click **Save**.
4. Click **Add** at the top of the page.
5. In the **Region Country** menu, select which country and state or province your business is based in.
6. For **Base Tax Title & Rate**, set the tax rate title and the actual tax rate to be charged.
7. For users who have enabled VAT or GST taxes, additional tax rates settings will be configurable: Tax 2 and Tax 3. These will let you control how VAT or other taxes will behave within your store!
8. Click **Save**.
Your store will now begin charging tax based on the settings you've applied!
**Deciphering Tax Settings Lingo**
Here are some terms on the tax settings that you might want to know:
- **Tax Default** (the default tax to be applied to a customer's cart, before they enter shipping info).
- **Is Vat** (enable this option if you need the tax rate to be calculated as Value Added Tax).
- **Tax1, Tax2 etc. Title** (this is the name of the tax that your customers see).
- **Tax1, Tax2 etc. Percent** (the percentage of tax that you want to charge).
- **Tax1, Tax2 etc. Ignore No Tax Rules** (this will override any settings for products configured as non-taxable).
- **Tax2, Tax3 Include Previous** (Allows users to decide how the rate will be applied to the order. The **Add to Total Only** option will calculate itbased on the order total. The **Apply to Total and Tax1** option will calculate it with the other taxes added in.)
**Tips and Tricks**
### **Display Itemized Taxes**
To enable an itemized display of taxes at checkout, go to **Settings \> Config Variables** and enable **Display Tax Breakdown to Customer*.***
This will split out the tax rates on the Shopping Cart and One Page Checkout pages!
### **Tax on Shipping**
If you want to collect shipping tax, go to **Tax** \> **Settings** and click **Settings** at the top of the page. Choose your preference from the **Tax on Shipping** menu, then click **Save**.
### **Setting Up Tax-Exempt Products**
To set a particular product as tax exempt:
1. Go to **Inventory** \> **Products**.
2. Click on the product you want to edit.
3. Under **Advanced Info** \> **Pricing**, set the **Taxable Product** menu to **N**.
4. Click **Save**.
Now your product will be tax exempt.
### **Tax Exempt Customers**
Some of your customers may have a tax exempt status (for example, charities or non-profit organizations). Here's how to make a specific customer registered with your store tax exempt:
1. Go to **Customers** \> **Accounts**.
2. Click on the ID number of the customer you want to edit.
3. In the customer settings, under the header **Special Privileges** (click the header to view its settings), choose **Tax Exempt/Does Not Pay Tax** from the menu labeled PaysStateTax.
The customer you edited is now tax exempt and will not be charged any tax by your store.
**Summary**
No matter where your business is located, Volusion makes it easy to configure tax settings. If you have any further tax questions, **[contact our support team](https://help.volusion.com/s/ContactUs?hsLang=en-us).**
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