Author
Endertech Team Logo
Endertech Team
Published
10/2/2017
Categories
E-Commerce

Know Your Magento 2 Tax Configuration

Magento-Tax-Featured

Know Your Magento 2 Tax Configuration

Magento calculates and applies tax based on tax rules.  Each tax rule is associated with a particular customer tax class, product tax class, and tax rate.  Each tax rate is associated with a particular tax zone.

Customer tax classes are assigned to customer groups.  From the Admin, go to Stores / Customer Groups.

Product tax classes are assigned to individual products.  From the Admin, go to Products / Catalog.

The defaults for customer tax class and product tax class are defined under Stores / Configuration / Sales / Tax.  Typically:    Default Tax Class for Customer = Retail Customer    Default Tax Class for Product = Taxable Goods

Setting a Tax Rule

1. From the Admin, go to Stores / Tax Rules 2. Click on Add New Tax Rule and fill the pertinent fields:       Name – the name of the tax rule       Customer Tax Class – the customer group to which the tax rule applies       Product Tax Class – the product group to which the tax rule applies       Tax Rate – the rate used when the given tax rule is applied       Priority – used when multiple tax rules are applied       Subtotal Only – used when tax is applied to the order subtotal only       Sort Order – the position of the tax rule when used with others    A typical tax rule for a Los Angeles store might be:       Name – California       Customer Tax Class – Retail Customer       Product Tax Class – Taxable Goods       Tax Rate – US-CA-*-Rate 1       Priority – 0       Subtotal Only – 0       Sort Order – 0 3. Click on Save Rule.

Creating a Tax Class

1. On the New Tax Rule page (when a new tax rule is being defined), expand Advanced Settings. 2. Click on Add New Tax Class in either the Customer Tax Class section or the Product Tax Class section.

Setting a Tax Rate

1. From the Admin, go to Stores / Tax Zones and Rates.   2. Click on Add New Tax Rate and fill the pertinent fields:       Tax Identifier       Country       State/Region       ZIP/Post Code       Rate 3. Click on Save Rate.