The tax tool lets you charge different taxes for different locations as countries, states and cities that you ship to will probably have different tax rates.
Taxes are set by the you in Build > Ecommerce settings and displayed to the customer in Checkout webview
Steps to use the tool:
1. Select your store base country. This would be the country where you are based
2. Select your Selling information as shown in the GIF below
3. Click on Configure taxes and fill in your tax rates in the table that pops up. Let’s take a look at the table fields
Name of tax: Name your tax, e.g. VAT. This is the name that will show on checkout webview
Country Code – 2 digit country code for the rate. Use ISO 3166-1 alpha-2 codes. which can be found here Leave blank (*) to apply to all countries.
State Code – 2 digit state code for the rate. For the US, use a 2 digit abbreviation e.g. AL. Leave blank (*) to apply to all states.
ZIP/Postcode – Enter postcodes for the rate. You may separate multiple values with a semi-colon (;), use wildcards to match several postcodes (e.g. PE* would match all postcodes starting with PE), and use numeric ranges (e.g. 2000-3000). Leave blank (*) to apply to all postcodes.
Rate % – Enter the tax rate, for example, 20.000 for a tax rate of 20%.
Shipping – If this rate also applies to shipping, check this box.