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Why you need to select a product category

Updated April 16, 2026

Understand how product categories drive accurate tax calculations at checkout

When you create or edit a product, you need to select a product category. Fourthwall uses this category to calculate the correct sales tax or VAT for each order. Different product types are taxed at different rates, and selecting the right category ensures your supporters are charged the correct amount at checkout.

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Product category selection is required for all products, including self-fulfilled products. For on-demand products sourced by Fourthwall, the category is pre-assigned, but you can update it if needed.

How product categories work​

  • Each category represents a general type of product (for example, Apparel, Electronics, or Home Goods).
  • Many categories include subcategories for more specific classification. For example, "Apparel" may contain options like "Tops" or "Accessories."
  • Fourthwall maps each category to an Avalara tax code, which determines the tax rate applied in your supporter's region.
  • If you don't find an exact match for your product, select the category that best represents it. A broadly correct category is better than leaving it unset.

Why this matters​

Tax laws require products to be classified correctly so the right tax rate applies. Selecting the correct category ensures:

  • Accurate sales tax and VAT calculations for your supporters.
  • Compliance with tax regulations across different countries and regions.
  • Fewer issues with tax authorities in regions where Fourthwall collects and remits tax on your behalf.

Fourthwall calculates VAT for all 27 EU countries. At checkout, supporters see the tax labeled based on their location: "VAT" for EU buyers, "Sales tax" for US buyers, and "Taxes/VAT" for all others. Correct product categorization is what makes these calculations accurate.

Choosing the right category​

When creating or editing a product on the desktop dashboard:

  1. Find the Product category dropdown on the product details page.
  2. Browse or search for the category that best describes your product.
  3. If a more specific subcategory is available, select it for the most accurate tax classification.
  4. If no exact match exists, choose the closest available option.

You can also assign product categories in the Fourthwall mobile app. Open any product, tap the Product category field, and select the appropriate category.

After you save, Fourthwall uses the selected category to apply the correct sales tax or VAT rate to supporter orders at checkout. No further action is required from you.

Frequently asked questions​

Do I need to select a category for on-demand products?​

On-demand products sourced from the Fourthwall catalog have a pre-assigned category. You can update it if you believe a different category is more accurate, but it is not required.

What if I can't find a category that matches my product?​

Select the closest available category. If none of the options is a reasonable match, contact Fourthwall support for help with the correct classification. Using an incorrect category intentionally to reduce tax charges is not permitted.

Can I assign product categories on the mobile app?​

Yes. Open the product in the Fourthwall mobile app, tap the Product category field, and choose the appropriate category. The mobile app supports the same category list as the desktop dashboard.

Why are my supporters seeing different tax labels at checkout?​

Fourthwall displays tax based on the supporter's location. EU supporters see "VAT," US supporters see "Sales tax," and supporters in other regions see "Taxes/VAT." This labeling is automatic and based on the supporter's billing or shipping address.

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