Tax Rates
Tax rates define the actual percentages applied to orders in a region. You can have a standard rate that applies to everything, plus override rates for specific product types or customer groups (e.g. VAT-exempt businesses).
Adding a standard rate
Open Settings → Taxes, select your region, and click + Add rate.
| Field | Description |
|---|---|
| Name | Label for the rate — e.g. "Standard VAT", "Zero Rate", "Reduced Rate" |
| Rate | Percentage as a number — e.g. 16 for 16% |
| Code | Optional tax code for accounting exports — e.g. KE_VAT_STANDARD |
Kenya uses a single standard rate: 16% VAT. Add one rate named "Standard VAT" at 16%. Most stores only need this one rate.
Product-type overrides
Some product categories carry a different rate. For example:
- Basic foodstuffs: 0% in Kenya
- Agricultural inputs: 0% in Kenya
- Petroleum products: different excise duty applies
To set an override:
- Open the tax rate you want to override
- Click + Add override
- Choose Product type (not product — overrides are per product type)
- Search for or create the product type (e.g. "Food — Basic")
- Enter the override rate (e.g.
0)
Products you tag with that product type will use the override rate instead of the standard rate.
Setting a product's type
Open any product, scroll to the Organize section, and set Product type to match one of your override-configured types.
Customer group exemptions
Some customers may be tax-exempt — VAT-registered businesses purchasing for resale, NGOs, or diplomatic missions.
To exempt a customer group:
- Create a customer group named "VAT Exempt" (or similar) under Customers → Groups
- Open the tax rate → + Add override → Customer group
- Select the group and set the rate to
0
Customers in that group will not be charged VAT at checkout.
Tax exemption is a legal matter. Only grant it to customers who have provided valid documentation (e.g. a VAT registration certificate). Keep records in case of a KRA audit.
Shipping tax
By default, shipping is not taxed. To add VAT to shipping:
- Open the tax rate
- Toggle Apply to shipping on
- Save
This applies the rate to the shipping cost in addition to the product cost.
Verifying your setup
After configuring rates, place a test order through the storefront (or create a draft order in the admin) and check the order summary. You should see:
- Tax amount displayed separately at checkout
- Correct percentage applied
- Zero tax for exempt customer groups