When adding products to your store you need to select a tax category that applies to what you're selling.
Different products can have different tax rates in different countries, meaning Lemon Squeezy needs to properly calculate and apply the right tax amount on each individual order. Selecting the correct tax category is important so that you don't overcharge tax on your customers' purchases.
To select a tax category for your product, open the product editing panel and choose the most appropriate option from the list.
You are able to choose different tax categories for each of your products individually.
- Digital goods or services - This is the default option and covers all one-off digital products and downloads, for example PDFs, themes, icons, videos, courses and photos.
- Ebook - Electronic books (these are often taxed at lower rates than other digital goods and sometimes without tax).
- Software as a service (SaaS) - Software that allows access based on an ongoing subscription, typically accessed online rather than being downloaded.