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 

Country/Edition

Supported Taxes

Within the Country

International Trade

India

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

 

Australia

10%

 

  • 10%

  • Category level override only supported.

GST_FREE_EXPORT

 

UK

  • 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.

Canada

 

  • 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.

UAE

  • 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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