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Understanding tax configuration

This article explains how to use the Tax Configuration page in Swap to control where sales tax and VAT are collected based on your business's tax obligations.

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Written by Jemma O'Leary

This article explains how to use the Tax Configuration page in Swap to control where sales tax and VAT are collected based on your business's tax obligations.


Accessing the Tax Configuration page

Go to Global → Tax Configuration in your Swap Dashboard.


Supported jurisdictions

Swap currently supports tax configuration for:

  • Country-level jurisdictions: Australia, Canada, Malaysia, New Zealand, Norway, Singapore, Switzerland

  • Region-level jurisdictions: All US states and territories

These are the only locations where tax collection can be toggled on or off. For all other countries, tax is collected by default under the assumption that nexus exists.


Enabling tax collection

Each supported location is listed in a table with the following columns:

  • Jurisdiction name

  • Reference tax rate — an estimated rate; for US states, actual rates vary by destination

  • Toggle — enable or disable tax collection

  • Date Modified — when the setting was last updated

  • Modified By — whether the change was made by your team or by Swap

Toggles take effect immediately. You are responsible for enabling tax collection in the jurisdictions where your business has nexus.

Toggle rules

Jurisdiction

Toggle setting

Result

Any country

Off

Tax is not applied unless the order exceeds the jurisdiction's threshold, in which case tax is charged.

Any country

On

Tax is applied according to the jurisdiction's rules.

United States

Country toggle off

No state-level taxes are applied.

United States

Country toggle on + individual states on

Tax is collected only for enabled states.

Note: Some jurisdictions apply tax only if the order exceeds a defined value threshold.


Default toggle behaviour

  • All tax collection toggles are off by default for new stores and newly supported jurisdictions.

  • Tax is not collected unless a jurisdiction is manually enabled.

Swap does not currently offer automated nexus tracking. Monitor your obligations and update your settings accordingly.

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