Set up sales tax

Configure your store default under Business → Store Configuration → Default Tax Rate. Enable Prices include tax if your entered prices already include tax, then save.

For a specific product, open its tax card:

• Charge taxes off makes that product exempt regardless of the global or fulfillment-location rate.
• With Charge taxes on, Custom tax rate overrides the inherited rate. Leave it blank to use the location/global rate; blank and an explicit 0% are different settings.
• For a bundle, tax settings apply to the whole bundle; individual component tax-rate overrides are ignored.

A fulfillment method can have a Tax rate override under Business → Fulfillment Methods. Review the product and selected method when an order's tax differs from your store default.

After saving, check a sample order with the intended products and fulfillment method, including the inclusive/exclusive price treatment. These settings calculate the tax on your orders; choose rates appropriate to your business.

New stores start at 0% — Bakebug never sets a rate for you. Australian stores show the default rate as GST on the storefront and start with Prices include tax on, since Australian prices are normally shown GST-inclusive; whether your sales are taxable, and at what rate, is for you (and your accountant) to decide.