> 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.

<div align="left"><img src="/files/-MZnTZ2immy9xTxnjCBK" alt=""></div>

### Select shipping address for calculations&#x20;

1. Go to **WooCommerce**, select **Settings**, then select **Tax**.&#x20;
2. In the **Calculate tax based on** field, select **Customer shipping address**.

<div align="left"><img src="/files/-MgBLG4STsj0yloJyZjA" alt=""></div>

## 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. &#x20;