# Taxes

Tax behavior tells Thor whether an amount already contains tax.
Address context and your configured tax setup determine the applicable calculation.
Keep this distinction explicit in product prices, shipping rates, and the amounts you show buyers.

## Inclusive and exclusive prices

`INCLUSIVE` means tax is included in the stored amount.
`EXCLUSIVE` means tax is added to it.
For illustration, an exclusive EUR 100.00 amount at a hypothetical 25% rate has EUR 25.00 tax and EUR 125.00 gross.
An inclusive EUR 125.00 amount at that same rate contains EUR 25.00 tax.
This arithmetic example is not a statement about the rate applicable to a real order.

## Configuration and context

The Admin [vatRates query](/api/admin-graphql/queries/vat-rates) accepts country and effective-date context.
Project overrides can express a configured replacement rate for a dated period.
Use the public input contract and avoid overlapping override windows.
A store can also use an [external tax configuration](/api/admin-graphql/objects/external-tax-configuration) when an integration supplies tax calculation.

Supply the country and address data your checkout requires before presenting totals as final.
Changing the address can change tax and shipping together.

## Display returned amounts

Use Thor's `TaxedPrice`, `TaxPortion`, and money fields rather than reproducing calculation from a displayed percentage.
Apply the same display convention across the product page, cart, checkout, and order confirmation.

See [Configure prices, inventory, and tax](/guides/catalog/configure-commerce) for setup and [Money and rounding](/concepts/pricing/money) for amount handling.