# Tax

Configuration

Tax in GrandNode has three parts: **tax categories** (what kind of product it is), a **tax provider** (how the rate is found) and the **tax settings** (how prices are entered and shown).

### Tax categories

**Configuration → Tax → Tax categories**. Create one category per rate group - for example "Standard", "Reduced", "Books" - and assign each product to one on its Prices tab.

![Tax categories: Home & Living, Electronics & Software, Downloadable Products, Sports & Outdoor and Apparel with display order](https://grandnode.com/Plugins/Theme.GrandNodeCom/Content/kb/configuration/tax-categories.webp)

Configuration → Tax → Tax categories.

### Tax providers

**Configuration → Tax → Tax providers** lists the installed providers; one is the **primary** provider that calculates tax.

![Tax providers: Tax by fixed rate and Tax by country and state (zip), with Mark as primary provider buttons](https://grandnode.com/Plugins/Theme.GrandNodeCom/Content/kb/configuration/tax-providers.webp)

Configuration → Tax → Tax providers.

- **Tax by fixed rate**: one rate per tax category, the same for every customer. Simple and enough for many single-country shops. Set the rates with **Configure**.
- **Tax by country and state (zip)**: rates per tax category, country, state and zip code - for selling across borders or in the US.

More providers (for example tax services) are added with plugins.

### Tax settings

![Tax settings: prices include tax, tax based on billing address, allow customers to select tax display type, tax display type excluding tax, display all applied rates, hide zero tax, default tax category, default tax address, shipping and payment fee taxable](https://grandnode.com/Plugins/Theme.GrandNodeCom/Content/kb/configuration/tax-settings.webp)

Configuration → Tax → Tax settings.

| Setting | What it does |
|---|---|
| Prices include tax | On: the prices you enter already contain tax (typical in Europe). Off: tax is added on top (typical in the US). |
| Tax based on | Which address decides the rate: billing, shipping, or the default tax address. |
| Tax display type | Show prices including or excluding tax; **Allow customers to select tax display type** lets B2B customers switch. |
| Display all applied tax rates, Hide zero tax, Hide tax in order summary | How tax lines appear in the cart and on orders. |
| Force tax exclusion from order subtotal | Shows the subtotal without tax even when prices include tax. |
| Default tax category | The category for products without one. |
| Default tax address | Used before the customer has entered an address, and with "Tax based on: default address". |
| Shipping is taxable, Payment method additional fee is taxable | Whether tax applies to shipping and payment fees, each with its own tax category. |

The EU VAT options (VAT number validation, reverse charge for businesses) are in the same page when enabled.

### Tips

- Decide **Prices include tax** before entering products; switching later changes every price's meaning.
- Test with a customer address in each country you serve and compare the cart totals with your accountant's expectations.

### Related

- [Currencies, countries and measures](https://grandnode.com/configuration-currencies-countries-measures)
- [Prices and inventory](https://grandnode.com/catalog-prices-inventory)

- [Web page](https://grandnode.com/configuration-tax)