Set up tax settings (US only)
So that users understand the exact price that they’ll have to pay for a product, you must submit the taxes that you collect. This article helps you understand how to correctly set up your tax settings. Learn more about how tax settings work and when to use them.
Before you begin (US only)
Keep in mind that you’ll set up tax rates for each United States state that you charge taxes for. Typically, these are the states that your business has nexus in. If your products target the United States, but you don’t charge taxes in the United States, still indicate that in your tax settings.
You can choose from the following options to determine tax in each state. Consult your tax advisor to understand which options would work best for you.
- Specify a flat rate for origin-based states, which charge taxes based on where you (the seller) are located.
- Use a Google determined rate for destination-based states, which charge taxes based on where your customer (the buyer) is located. This option assumes that you have nexus everywhere in the state (in every city and county). So if the state is a Home Rule state where sub-state nexus matters, the Google determined rate might not be accurate.
- Use the
taxattribute if you collect a non-standard tax rate for a product or a product is exempt from tax.
Instructions (US only)
Use account settings for standard tax rates
To set up taxes, you’ll set taxes for each state where you charge taxes:
- Sign in to your Merchant Center account.
- Click Tax in the page menu.
- If you don’t charge taxes at all in the United States:
- Select Don’t charge taxes in the United States.
- If you do charge taxes in the United states:
- Select Specify taxes for individual states.
- Under State add a state where you charge tax.
- Choose the Tax rate:
- Specify a flat rate to enter a specific rate. You may want to consider this option for origin-based states or if you want to enter a custom rate.
- Google determined rate to let Google estimate the rate for destination-based states.
- If you charge tax on shipping, under Tax on shipping, select Apply.
- To add another state where you charge tax, click + Add another state.
- Click Save once you’re finished.
Use an attribute for non-standard tax rates
If you have one product that has a different tax rate or that’s tax exempt, submit the
tax attribute for that product.
The value that you submit for the
tax attribute will override any account tax settings for that product.