> For the complete documentation index, see [llms.txt](https://docs.digitalriver.com/woocommerce/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.digitalriver.com/woocommerce/1.0-1/user-guide/tax.md).
# Tax
See [Enable taxes](/woocommerce/1.0-1/configuring-the-woocomerce-plugin/configure-general-settings.md#enable-taxes) in the [Configure general settings](/woocommerce/1.0-1/configuring-the-woocomerce-plugin/configure-general-settings.md) section.
## Prices entered with tax
To configure taxes, go to **WooCommerce**, select **Settings**, then select **Tax**.
The option you choose here is important when managing taxes in your store. It determines how you input product prices later on. Your options are as follows:
* **Yes, I will enter prices inclusive of tax** means that all catalog prices are entered using your store’s base tax rate.
* **No, I will enter prices exclusive of tax** means that your catalog prices need to be tax exclusive.
For this example, **No, I will enter prices exclusive of tax** is selected.
### Select shipping address for calculations
1. Go to **WooCommerce**, select **Settings**, then select **Tax**.
2. In the **Calculate tax based on** field, select **Customer shipping address**.
## Display prices in the shop
This option determines how prices are displayed in your shop or catalog. Choose from an inclusive or exclusive tax display. If you choose **inclusive**, prices will be shown inclusive of taxes although you have selected **No, I will enter prices exclusive of tax**. Digital River does the tax calculation.
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