# Utilizing Zones and Taxes Rates

{% tabs %}
{% tab title="Set up Zones" %}
This tab allows you to set the territories that you want to serve. A zone is required to set up shipping methods and tax rates.

### Step 1:

 Go to **ECommerce** then go to **Settings** > **Zones**. Click the **New Zone button**.

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/10/new-zone-button-1024x513.png)

### Step 2:

Enter the Zone details in the resulting dialog box. You can have a large zone with multiple countries or a small one with only one. It all depends on the size of your operations. 

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/zone.png)

* **Name** – The name of the zone (required)
* **Description** – You can add any description to this zone. For example, you can input the size of your business’s operations here.
* **Countries** – You have to input the country where the zone is located. You can input more than one country if it makes sense (for example, if your operations span several countries)

![warning-icon-imonggo](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2019/06/icons8-warning-24.png)***We are developing smaller zones like states or cities.***

### Step 3:

To delete a zone, just click the trash can icon

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/delete-zones-1024x443.png)
{% endtab %}

{% tab title="Set up Tax Rates" %}
Here you can create Tax Rates in relation with Zones. Then you have to group them together in Tax Codes.

You have to create the Tax Rates first.

### Step 1:

First, go to **Settings** > **Tax Rates**. Click the **New Tax Rate button** to create one.

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/new-tax-rate-1024x372.png)

### Step 2:

On the next dialog box, enter the following:

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/Screenshot_311.png)

* **Name** – The name of the tax rate
* Rate – The rate of the tax (expressed in decimal form)
* **Zone** – The zone where the tax will be applied
* **Included in Price** – Check this box if you want to tax to be inclusive.
* **Show Rate in Label** – Check this box if you want the tax rate to show up to the customer, along with the amount of tax.

### Step 3:

Then just click Save. If you have similar tax rates for other zones, you may create them too.

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/Screenshot_306.png)

{% endtab %}

{% tab title="Set up Tax Codes " %}
Group together similar Tax Rates in one **Tax Code**. Steps to set up Tax Codes:

### Step 1:

First, go to **Settings** > **Codes**. Click the **New Tax Code button** to create one.

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/new-tax-code-1024x296.png)

### Step 2:

On the next dialog box, enter the following:

![](https://imonggocloudfrontcdn1.imonggo.com/wp-content/uploads/2020/11/six-taxes-tax-code-1.png)

* **Name** – The name of the tax category (required)
* **Tax Code** – You can input any code that corresponds with this tax category
* **Description** – You can input the description of this tax category here
* **Tax Rates** – Enter every related tax rate. Here we added the Sin Tax for MoonLand and the Sin Tax for SunLand.

### Step 3:

Then just click Save.
{% endtab %}
{% endtabs %}