Before setting your tax rates, decide whether you’d like your prices to include or exclude tax. By default, tax isn’t included in the price and it’s added on when you check out.

If you’re using Products when you sell, taxes can be added from the product. Here’s how:

1. Go to Products and click Product Library.
2. Add a new product.
3. Scroll down to the section called Tax.
4. Click the drop-down labeled “Select tax” or “Number selected taxes." This will show you a list of taxes that you’ve created, or an empty list, where you can either:
   a. Add a new tax by clicking Create New.
   b. Or choose a tax from the list.
5. Save the product with the correct information.
   

Remember, it’s your responsibility to make sure you’re collecting the right amount of tax for your region. Consult with a tax expert if you’re unsure.

When you sell with PayPal Zettle, you can:

• Adjust your taxes depending on the product, the sale, or even the day.
• Add up to 15 different tax rates.
• Set different taxes for various products.
• Switch them on or off during a sale.

If you’re using Products when you sell, taxes can be added from the product. Here’s how:

1. Log in to your account in the app.
2. Go to Settings and choose Library.
3. Tap Taxes.
4. If you’ve created taxes, these should show in a list below the price setting.
5. If you haven’t created taxes, click Create tax to add your first one.
6. Enter the label (name of your tax) and the percentage.
7. Tap Save.

Tax exemption

Occasionally, your product or customer may be eligible for tax exemption. In that case, there are 3 ways to set the exemption:

1. If a product is always exempt from tax:

1. Go to your Product Library in your online PayPal Zettle account.
2. Click the product that you want to exempt.
3. Scroll down to the section "Tax."
4. Click Exempt product from tax collection.
5. Click Save.

2. If a product is temporarily exempt from tax:

1. Add the product to the cart in the PayPal Zettle app.
2. Tap the product that you want to exempt in the cart.
3. Tap Exempt from tax collection.

Next time you add the product to the cart, taxes are enabled. If you want it to be permanently exempt, follow the steps in the previous section.

3. If the whole sale is exempt from tax collection:

1. Add all the products being sold to the cart in the PayPal Zettle app.
2. Tap tax summary shown below the products in the cart.
3. Tap Exempt from tax collection.

If you’re taking payments using the custom amount keypad:

1. Tap Tax in the top-right corner.
2. Tap Exempt from tax collection.

This sale is now exempt from tax collection and "Tax Exempt" is shown on the receipts of that sale. You can also see this in the Product Report where tax-exempt sales are aggregated.