Tax Regions

Tax regions are jurisdictions where you have collection obligation. Manage rates per region, comply with local rules, file accurately.

Updated: June 9, 2026
Reading time: 2 min

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A Tax Region is a jurisdiction where you have tax-collection obligation (sometimes called "nexus"). Establishing nexus may be triggered by physical presence, economic thresholds, or marketplace facilitator status. Consult a tax professional: region rules change.

Before you begin

Go to Settings, then open Taxes.
You have Taxes settings permission.
You have professional tax advice for which regions apply.
You have tax registration numbers in hand.

How nexus is triggered (generic)

Trigger	Typical
Physical presence	Office, warehouse, employee
Economic threshold	Revenue or order count in a region
Marketplace facilitator	Selling via a marketplace that collects for you
Affiliate / click-through	Some US states
Inventory in fulfillment center	E.g., FBA

Per-region setup

Field	Detail
Region	Country / state / province
Tax registration number	E.g., VAT number, EIN, sales-tax ID
Rate	Local rate (or automatic via service)
Override rates	Per-product or per-category overrides
Effective dates	When obligation started

Steps

1. Open Settings > Taxes

(opens full size)

2. Click Add region

3. Pick country / state

4. Enter tax registration number

5. Set rate or enable auto-calculation

6. Save

7. Repeat per region of obligation

Verify the result

Region listed.
Tax applied at checkout for in-region addresses.
Registration number on invoices.

Best practices

Tax professional consultation is non-negotiable.
Monitor nexus thresholds quarterly.
Keep registration documents organized.
Filing calendar per region.

Common mistakes

Guess nexus: wrong = under-collection liability.
Stale rates: fail audits.
Missing registration: illegal collection.

If something goes wrong

Wrong tax at checkout: verify rate + region match.
Permission denied: your role lacks Taxes settings.

Next steps

Duties + Import Tax