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Configure Sales tax/VAT on the product Root Category level

Configure tax rules per product category, perfect for distinguishing taxable products from non-taxable services.

Updated today

📝 Note: This setting overrides the general Sales tax/VAT configuration set under Admin → Financial → Taxes.

For cases where tax should differ by product type (e.g., products are taxable but services are not which is common in the US), Salesbuildr allows you to configure VAT/Sales Tax at the product root category level.

🔧 How to Set It Up

  1. Navigate to Products > Categories

  2. Select a Root Category you want to change the Sales tax/VAT settings and click the ✏️ pencil icon to edit.

  3. In the Settings tab, scroll down to the “Is taxable?” field. You’ll see three options:

    1. Use customer default VAT/Sales Tax rate
      Applies the tax rate configured on the customer record. If none is set, it will fall back to the global Sales tax/VAT setting.

    2. Taxable
      Marks all products in this category as taxable. When selected, you’ll be prompted to choose a VAT rate.

    3. Non-taxable
      No VAT/Sales Tax will be applied to products in this category.

  4. If you selected Taxable, choose the appropriate VAT/Sales Tax rate.

  5. Click Save to apply your changes.

💡 Example Use Case

You sell laptops (taxable) and consulting services (non-taxable). By configuring separate root categories and applying tax settings at that level, you streamline VAT handling without needing to set it per product.

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