Taxes and Duties

The Taxes and Duties section in the Soppiya admin panel allows store owners to manage tax obligations across different regions. You can configure base tax rates for specific countries, apply tax overrides for certain product collections, and set specific rates for shipping.

Location: Settings → Taxes and Duties

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What Is Taxes and Duties?

Taxes and Duties is where you configure how your store calculates and collects taxes based on customer location. You can set base tax rates per country, create overrides for specific product collections (e.g., reduced VAT on food), and apply separate tax rates for shipping charges.

• Country-Based Taxes - Set default tax rates per country (VAT, GST, etc.)
• Product Overrides - Apply different rates to specific product collections
• Shipping Overrides - Tax shipping costs separately from product prices
• Multi-Region Support - Manage tax obligations across multiple countries simultaneously

For Store Owners

Always verify tax rates with a local tax professional — rates change frequently and vary by jurisdiction.

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Quick Start Guide

If you're setting up taxes for the first time, follow these steps:

1. Add your primary country — Click "Add tax" and select your home country
2. Review the base tax rate — Check that the default rate matches your local tax requirements
3. Add product overrides (if needed) — Set different rates for tax-exempt or reduced-rate collections
4. Add shipping overrides (if needed) — Apply tax to shipping charges separately

For detailed instructions, continue reading below.

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Accessing Taxes and Duties

1. Log in to your Soppiya Admin Dashboard.
2. Navigate to the Settings gear icon in the bottom-left corner.
3. From the sidebar menu, select Taxes and duties.

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Managing the Tax List

The main landing page displays all countries where you currently collect taxes.

Viewing Tax Information

The table provides a summary of:

• Country: The name and flag of the tax region.
• Collecting: The type of tax being collected (e.g., VAT, GST, ICMS).

Searching and Filtering

• Search Bar: Use the search field at the top to find a specific country quickly.
• Add Filter: Click Add filter to narrow down the list by country name.

Adding a New Country Tax

1. Click the Add tax button in the top-right corner.
2. A Countries modal will appear with a list of available regions.
3. Use the search bar in the modal to find the desired country.
4. Select the checkbox next to the country (e.g., Algeria, Belarus).
5. Click the Add button.

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Configuring Country-Specific Taxes

Once a country is added, click on the country name from the main list to configure its specific settings.

Base Taxes

This section defines the standard tax rate for the entire country.

• Tax Table: Displays the Title, Type (Country), Tax Name (e.g., VAT), and Rate (e.g., 15%).
• Updating Base Tax: Click the three dots (...) under the Action column and select Edit. In the popup, you can modify the Tax Rate and Tax Name. Click Update to save.
• Reset to Default: If you have modified rates and wish to return to standard values, click Reset to default tax rates. A confirmation modal will appear; click Reset tax rates to proceed.

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Tax Overrides

Tax overrides allow you to deviate from the base tax rate for specific scenarios, such as certain product types or shipping costs.

Adding a Product/Collection Override

1. Click Add a tax override.
2. In the modal, ensure Collection is selected.
3. Select a specific collection from the Choose collection dropdown (e.g., "Shoe", "Collection 1").
4. Select the Location (usually the current country).
5. Enter the specific Tax rate (%).
6. Click Add override.

Adding a Shipping Override

1. Click Add a tax override.
2. In the modal, select Shipping.
3. Select the Location.
4. Enter the Tax rate (%) specific to shipping costs.
5. Click Add override.

Managing Overrides

• Viewing: Overrides are listed under "Shipping overrides" or "Product overrides."
• Editing: Click the action menu (...) next to an override and select Edit to change the rate.
• Removing: Click the action menu (...) and select Remove. A confirmation prompt will appear stating "This action cannot be reversed."

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Deleting a Tax Region

If you no longer have a tax obligation in a specific country:

1. Navigate to that country's tax settings page.
2. Scroll to the bottom and click the red Delete Tax button.
3. A confirmation modal will appear: "Are you sure you want to delete [Country]? This action cannot be undone."
4. Click Yes, Delete.

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Real World Examples

Example 1: Bangladesh VAT Setup

Goal: Configure standard VAT for a Bangladesh-based store with reduced tax on essential goods.

Configuration:

Setting	Value
Country	Bangladesh
Base Tax	VAT at 15%
Product Override	"Essential Foods" collection at 5%
Shipping Override	None (shipping untaxed)

Steps:

1. Add Bangladesh as a tax country
2. Set the base VAT rate to 15%
3. Create a "Essential Foods" collection for qualifying products
4. Add a product override: Essential Foods → 5%

Why this works:

• Standard goods are taxed at the full 15% rate
• Essential products receive the reduced 5% rate
• Shipping isn't taxed, keeping delivery costs transparent

Example 2: Multi-Country Tax Configuration

Goal: Sell to both Bangladesh and India with different tax structures.

Configuration:

Country	Tax Type	Base Rate	Overrides
Bangladesh	VAT	15%	Essential Foods: 5%
India	GST	18%	Shipping: 5%

Why this works:

• Each country has its own base rate matching local regulations
• Product overrides handle category-specific exemptions
• Shipping overrides ensure accurate tax on delivery charges in India

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Troubleshooting

Taxes aren't being applied at checkout

Possible causes:

• No tax country is configured for the customer's region
• The customer's shipping address doesn't match any configured tax country

Solution:

1. Go to Settings → Taxes and Duties
2. Verify the customer's country appears in your tax list
3. If not, click Add tax and add the country with the appropriate rate

A product collection has the wrong tax rate

Possible causes:

• A tax override is applied to the collection but with an incorrect rate

Solution:

1. Navigate to the country's tax settings
2. Under "Product overrides," find the collection
3. Click the action menu (...) and select Edit
4. Update the tax rate and click Update

I accidentally reset tax rates to default

Possible causes:

• The "Reset to default tax rates" button was clicked

Solution:

1. This action is not reversible
2. You must manually re-enter your custom tax rates
3. Review all overrides — they may also need to be re-created
4. Keep a record of your custom rates externally for future reference

Need More Help?

If you're still experiencing issues, contact Soppiya support with the country name and the expected vs. actual tax rate.

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Best Practices

Tax Management Best Practices

Legal Compliance

• Verify rates with a tax professional — rates change frequently and vary by jurisdiction
• Keep records — document why specific overrides were applied
• Review periodically — check your tax configuration quarterly for rate changes

Configuration

• Organize collections before overrides — ensure products are properly grouped before applying tax overrides
• Use "Reset to default" sparingly — it overwrites all manual changes and cannot be undone
• Test with orders — place test orders to verify correct tax calculation at checkout

Common Mistakes to Avoid

• ❌ Setting tax rates without professional advice — incorrect rates can lead to legal penalties
• ❌ Resetting to defaults without recording custom rates — your manual changes will be lost
• ❌ Applying product overrides to disorganized collections — incorrect grouping leads to wrong tax calculations
• ❌ Forgetting to add a country — customers from unconfigured countries won't be taxed

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Summary

Taxes and Duties settings control how your store calculates and collects taxes based on customer location and product type. You can set base rates per country and create overrides for specific product collections or shipping charges.

Key takeaways:

• Add each country where you have a tax obligation with its base tax rate
• Use product overrides for collections that qualify for reduced or zero tax rates
• Use shipping overrides when shipping charges must be taxed separately
• The "Reset to default" action is irreversible — use it carefully
• Deleting a tax region is permanent and removes all associated rates and overrides
• Always verify tax rates with a local tax professional

If you're just getting started, add your home country with its standard tax rate — you can add overrides and additional countries as your business grows.