Tax types

Tax types group tax rates by what they apply to - the two built-in types being Taxable goods and Downloadable goods, useful because digital goods are often taxed differently per country.

Managing tax types

From Settings → Ecommerce → Tax types you can add custom types (e.g. Reduced rate goods) and assign each type a sort order for display.

Rates are then configured per region in tax rates; a product is taxed according to the tax class it belongs to (see tax classes).