Tax configuration makes it easy for the business owners to configure the taxes automatically based on values. This also allows configuring different tax slabs for different customers which enables more flexibility over shipping rates. These taxes can be flat rates or certain percentages of existing rate or shipment value. Multiple taxes can be configured based on shipment type and shipping mode.

Businesses that are involved in international trade can benefit from using tax configurations because they can create multiple tax models based on their needs. They can also use them to assess their competition and determine what product they should focus on creating next.

How it works
Tax configurations are helpful for businesses that want to charge different rates for different products, but don't want to create separate invoices for each product. Businesses can also use tax configurations to charge sales tax on services and other taxable transactions.

Tax configuration settings include:

Shipping cost: This setting determines how much you charge based on your shipping rate, which is usually based on the volume of items in the order. For example, if your shipping cost is $0.01 per item, you would enter "0" in this field.

Sales tax: If you're charging sales tax on your products or services, enter that amount here as well as the percentage (for example, 9% sales tax). Note: You'll need to set up a custom tax rate if you're charging more than one state's sales tax

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