A tax rate line is where a zone meets a class: it says what percentage items of that class pay when an order lands in that zone. The line has two names — one for your admin, and a display name your customer sees on orders and invoices.
Several lines on one combination
A zone-and-class combination can hold more than one line. India's intra-state GST is the classic case: a CGST line and an SGST line, each 9%, both on the same combination — the customer sees both on the invoice and pays 18% in total. Line names just have to differ within their combination.
Added versus compounded
Enter percentages from 0 to 100 with up to four decimal places. Every line combines with its siblings one of two ways. An added line is calculated on the item price itself, and added lines simply sum — two 9% lines charge 18%. A compounded line is calculated on the item price plus what the other lines already added: a tax on the tax. For Quebec, GST at 5% and QST at 9.975% are both added lines calculated on the price before tax; QST is not compounded on GST.
Combinations without a rate
If a zone-and-class combination has no rate line, items of that class in that zone receive no tax from zone rates. The counter shows how many combinations have at least one rate line. Filter by a zone and a class to review their saved rates. Add a 0% line when you want to record an intentional zero rate.