Tax Configuration

Tax configuration in Sellrn supports two approaches: manual tax rates(you define rates per region) and Stripe Tax (automatic rate lookup based on your customer's address and your nexus). Most stores start with manual rates and upgrade to Stripe Tax as they expand internationally.

Tax settings location

Go to Settings → Tax to access all tax configuration.

Option 1 — Manual tax rates

Manual rates are simple and predictable. You define a rate (e.g. 20% VAT for the UK) and it applies to all taxable orders shipping to that region.

1. Click Add tax rate.
2. Select the country (and optionally state/province).
3. Enter the rate as a percentage (e.g. 20 for 20%).
4. Enter the name displayed to customers at checkout (e.g. "VAT 20%").
5. Click Save.

Rates are matched against the customer's shipping address. If no rate matches the customer's country, tax is not charged (useful for countries where you have no tax obligation).

Tax-inclusive vs. tax-exclusive pricing

In Settings → Tax → Price display, choose:

• Tax-exclusive — your product prices do not include tax. Tax is added at checkout. Common in the US and B2B contexts.
• Tax-inclusive — your product prices already include tax. The breakdown is shown at checkout but the total does not change. Common in the EU and Australia (GST must be included in displayed prices by law).

Option 2 — Stripe Tax (automatic)

Stripe Tax calculates the correct tax rate for every order automatically based on your customer's location and your registered tax nexus. It handles US sales tax (by state and county), EU VAT, Australian GST, and 40+ other jurisdictions.

To enable Stripe Tax:

1. Go to Settings → Tax → Enable Stripe Tax.
2. In your Stripe Dashboard, go to Tax → Registrations and add your registered tax jurisdictions (the countries/states where you are obligated to collect tax).
3. Stripe Tax calculates and collects the correct amount automatically. Rates update when laws change.

Note: Stripe Tax charges a small fee per transaction (check your Stripe plan for current pricing).

Product tax categories

Not all products are taxed at the same rate. Food, children's clothing, and books are often zero-rated or reduced in many jurisdictions. In the product editor, set the Tax category to the appropriate type (e.g. "Physical goods", "Food products", "Digital services"). Stripe Tax uses this to apply the correct reduced rate automatically.

Tax-exempt buyers (B2B)

Many B2B buyers are VAT-registered and should not be charged tax. In the buyer's profile (Dashboard → Wholesale → Buyers → [buyer]), toggle Tax exempt. Tax is excluded from their checkout automatically. You should collect their VAT registration number for your records — add a field for this in the buyer application form.

Tax reporting

Download a tax report in Dashboard → Analytics → Tax report. The report shows tax collected by jurisdiction for any date range — useful for VAT returns and annual tax filings. If using Stripe Tax, you can also access detailed reports directly in the Stripe Dashboard.