Setting up taxes is a multistep process. If any of your goods/services are taxable, to setup your taxes you will need to configure:

1. Setup Product Tax Categories
2. Setup Tax Regions
3. Setup Tax Rules
4. Setup Tax Rates
5. Setup Tax Sets

Under Product Tax Categories you will define the categories of products that are taxable. For example, if you are using the store module and are required to collect tax on certain products, you could set up the tax categories based on your store product categories (i.e. apparel, gifts, etc.).

1. Click Setup
2. Click Taxes in the Finance section.

   

3. On the Product Tax Categories tab, click the Add button.

   

4. Enter a Name for the category.
5. Click Done.

The next step is to set up your tax regions.