Taxes

Navigate to yStore → Store → Taxes.

The tax system in yStore works in two layers: tax rates (the actual percentages per country/region) and tax categories (groups that determine which rate applies to a product). Products are assigned a tax category; the system looks up the rate for that category in the customer's shipping region at checkout.

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How tax calculation works

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Tax rates

Navigate to the Tax Rates tab.

A tax rate defines the percentage applied to products in a given region.

Field	Description
Name	Internal label (e.g. "Slovak VAT 20%", "Hungarian VAT 27%")
Rate	Percentage as a decimal — e.g. 0.20 for 20%
Tax category	Which category this rate applies to
Country	Country this rate applies to
State / Region	Optional regional restriction
Is VAT	Whether this is a VAT-type tax (affects invoice display)
Include in price	Whether this rate is included in the catalog price (tax-inclusive pricing)
Store view	Which store view this rate applies to

Tax-inclusive vs. tax-exclusive pricing

• Tax inclusive — catalog prices already include tax. The system extracts the tax component at checkout for display and reporting.
• Tax exclusive — catalog prices are net. Tax is added on top at checkout.

Set this per rate to match your regional legal requirements.

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Tax categories

Navigate to the Tax Categories tab.

Tax categories group products that share the same tax treatment. Common examples:

Standard Rate

The default tax category for most physical goods. Assign the standard VAT or sales tax rate here.

Typical products: clothing, electronics, household goods, accessories

Reduced Rate

Many jurisdictions have a reduced tax rate for certain product types — books, food, medical supplies, children's clothing.

Examples: Books (EU reduced rate), basic food items, prescription medication

Zero Rate / Exempt

Some products are zero-rated or fully exempt from tax — exports, certain financial services, some agricultural products.

Examples: Exports outside the EU, digital products to B2B customers with a valid VAT number (reverse charge)

Digital Goods

Digital products sold to EU consumers are taxed at the buyer's country rate (EU OSS/MOSS rules). Create a dedicated category so the system knows to apply destination-based rates.

Examples: Software licenses, e-books, music downloads, online courses, gift cards (in some jurisdictions)

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Assigning tax categories to products

Tax categories are assigned at the product type level — all products of that type inherit the category by default. You can override the category on individual products.

1. Go to yStore → Settings → Products.
2. Open the product type (e.g. "Physical Goods").
3. Set the Tax Category field.
4. Save. All products of this type now use this category.

To override on an individual product:

1. Open the product in yStore → Products.
2. Find the Tax Category field in the product settings panel.
3. Change it and save.

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Creating a tax rate

1. Go to yStore → Store → Taxes → Tax Rates tab.
2. Click New Tax Rate.
3. Enter the name, rate (as a decimal), and tax category.
4. Set the country (and region, if applicable).
5. Toggle Is VAT if this is a European VAT-type tax.
6. Set Include in price to match your pricing strategy.
7. Assign to the correct store view.
8. Save.

Multiple rates per category

You can create multiple rates for the same tax category — one per country. The system uses the most specific matching rule (country + region before country-only).

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Creating a tax category

1. Go to yStore → Store → Taxes → Tax Categories tab.
2. Click New Tax Category.
3. Enter a name (e.g. "Reduced Rate", "Digital Goods").
4. Set it as the default if this category should apply to products not explicitly assigned a category.
5. Save.

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Common tax setups

Setup	Configuration
Single-country, flat VAT	One tax rate, one tax category, country = your country
EU multi-country (OSS)	One rate per EU country per category
B2B reverse charge (EU)	Zero-rate category for customers with VAT IDs
US sales tax (multi-state)	One rate per state, assigned to the appropriate category
Tax-inclusive pricing	Enable "Include in price" on each rate

OSS / IOSS compliance

For EU digital sales above the OSS threshold, you must collect VAT at the buyer's rate for each EU country. Create one rate per EU member state for your digital goods category. Consider a dedicated invoicing plugin (Superfaktura, iDoklad, etc.) to handle the reporting.