docs: improvements to tax related docs (#13845)
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@@ -14,10 +14,12 @@ Refer to this [Medusa Admin User Guide](!user-guide!/settings/tax-regions#manage
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## What are Tax Rates?
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A tax rate is a percentage amount used to calculate the tax amount for each taxable item’s price, such as line items or shipping methods, in a cart. The sum of all calculated tax amounts are then added to the cart’s total as a tax total.
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A tax rate, represented by the [TaxRate data model](/references/tax/models/TaxRate), is a percentage amount used to calculate the tax amount for each taxable item’s price, such as line items or shipping methods, in a cart. The sum of all calculated tax amounts are then added to the cart’s total as a tax total.
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Each tax region has a default tax rate. This tax rate is applied to all taxable items of a cart in that region.
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The `TaxRate` data model has a `rate` property that represents the percentage amount. For example, a `rate` of `10` means a tax rate of 10%.
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### Combinable Tax Rates
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Tax regions can have parent tax regions. To inherit the tax rates of the parent tax region, set the `is_combinable` of the child’s tax rates to `true`.
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