Set up Tax Zones
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From admin dashboard go to Localization/Taxes => Tax Zones
Tax Zones are sometimes known as Geo Zones and are defined here so you can set up different tax rates, payment options and shipping options for each Tax Zone - this will be done in later steps Set up Tax Rates, Set up Payment Options, Set up Shipping Options.
To explain using the default Phoenix install as an example - the default shop is located in Florida so only charges tax in Florida.
A Tax Zone has been created and named Florida (it could be named anything) - open the Tax Zone (click the Folder icon) to see the areas included in this Tax Zone and you will see Country = United States and Zone = Florida.
To explain using a shop located in a different country as an example - the shop only charges tax in its own country.
Create a Tax Zone (click the Insert button) and give a name (anything you want) and description (anything you want) then click save.
Click the folder icon to open the new Tax Zone folder and click the Insert button. Select your country from the Country: drop down menu and select All Zones from the Zones: drop down menu and click save. This has now created a new Tax Zone where tax will be charged to all Zones (counties/provinces) within your country.
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