Tax zones determine where to apply taxes. A tax zone can be defined as a country, a geographic zone smaller than a country, a state or province, or a zone smaller than a state. This simplifies applying taxes to regions that have exceptions.

For example, in the Magelia WebStore, it is easy to define a tax zone that corresponds to Spain and which surrounding territories (like the Canary Islands) would be excluded because they do not fall under the same tax regulations as the rest of the country.