Taxes and VAT
Create tax rules, choose tax-inclusive or tax-on-top pricing, and understand how tax resolves on each line.
Last updated: 6 min read
Tax is configured under Commerce Management → Tax Management. You define named rates (a Title and a percentage) and the platform applies the right one to each cart line.
Inclusive vs on-top pricing
- Tax-inclusive (the default): your listed prices already include VAT; checkout shows the VAT portion inside the price and nothing is added to the total.
- Tax-on-top: VAT is calculated and added on top of the listed price at checkout.
Tax and discounts
Order-level discounts and coupons reduce the taxable amount, so VAT drops proportionally. Vouchers and loyalty redemptions act like a payment — they don't reduce the taxable base, so the VAT figure is unchanged.
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