Yes.
NOIR & BLANCO COMMUNITY
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Yes. Product categories can influence tax rates in Shopify.
Certain products are taxed differently depending on local tax laws, so assigning the correct product category (tax category) helps Shopify apply the appropriate tax treatment. For example:
Food and groceries
Clothing
Books
Digital products
Medical products
Tax-exempt or specially taxed goods
Using accurate product categories helps ensure that Shopify calculates taxes correctly for products that have reduced, exempt, or special tax rates in specific regions.