Types of Taxes

Types of Taxes

There are broadly four types of taxes to deal with. The final taxes are decided based on their priority level. Product-specific taxes have the highest priority when compared to all other taxes. Category-level taxes has the next weightage and then state-level taxes and finally country-level taxes are applied to the product if no other taxes are applicable.

In this section:

  • Country-level Taxes

  • State-level Taxes

  • Category-level Taxes

  • Checkout Tax Priority Level


 Country-level Taxes 

This is taken as the primary tax and is used as the default tax for every country, given there are no overlaps from other taxes.


 State-level Taxes 

There are taxes configured for state regulation. State-level taxes have more priority than country level.


 Category-level Taxes 

These taxes can be assigned to categories and also to particular states or countries.


 Checkout Tax Priority Level

When shipping to home country (based on given shipping address): 

Country tax > Category override for state > State override > Category override for country  


When shipping overseas: 

Category override for state > State override > Category override for country > Country tax


 Region-wise Taxes 

Tax rules and conditions can vary according to region. Find supported taxes both within the country as well as internationally.


Table of regions and supported taxes 


Supported Taxes

Within the Country

International Trade


0%, 5%, 12%, 18%, 28%


Intra-state tax

  • 0% -   CGST0 [0%], SGST0 [0%]

  • 5% - CGST2.5 [2.5%], SGST2.5 [2.5%]

  • 12% - CGST6 [6%], SGST6 [6%]

  • 18% - CGST9 [9%], SGST9 [9%]

  • 28% - CGST14 [14%], SGST14 [14%]

  • 3% - CGST1.5 [1.5%], SGST1.5 [1.5%]

  • 0.25% - CGST.125 [.125%], SGST.125 [.125%]




Inter-state tax

IGST 0%, IGST 5%, IGST 12%, IGST 18%, IGST 28%, IGST 3%, IGST 0.25%


  • Any one of the supported taxes.

  • The tax calculation is spilt into inter-state tax and intra-state tax.

  • Category level override only is supported.

  • Tax exemption is supported for product (category) level, for agriculture products).

  • 3% and 0.25% - jewellery items.

  • IGST 0





  • 10%

  • Category level override only supported.




  • Reduced Rate - 5%

  • Standard Rate - 20%

  • Zero Rate - 0%

  • Any of the supported tax rates.

  • No state level override is supported.

  • Category level override is supported.

No tax will be applied (As per UK government).

United States


  • Based on the tax rate created by the customer, tax will be applied.

  • If tax is registered and no tax rule is configured, error will be thrown.

  • Based on tax rate created.

  • All overrides will be provided (state and category override).

  • If no tax rule is created, then tax exemption will be applied.



  • If registered for tax, then based on tax rule created, tax will be applied. One of the following must be created:

  1. Goods and Services Tax(GST)

  2. GST+ Provincial Sales Tax(PST) i.e., Added to country tax.

  3. Harmonized Sales Tax (HST) i.e., Instead of country tax

If no tax rule is created, error will be thrown.

  • Tax overriding is supported (state and category override).

  • Based on tax rule created.

  • If no rule is created, then tax exemption will be applied.


  • Standard Rate - 5%

  • Zero Rate - 0%



  • Within UAE - Standard Tax, Zero Tax

  • Standard Tax - 5%

  • Zero Tax - 0%

0% tax for GCC and non-GCC countries.

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