Magento 2 Tax Settings Tutorials and VideosNEW TRAINING CONTENT: We've just released a series of on-demand lessons on how to set up tax on your Magento 2 store. 

Introduction to Tax in Magento

There are only two certainties in life: Death & Taxes. In this chapter, we will focus on the later.

Depending on where you are located, where your customer is located or what legislation you are required to comply with tax is an inevitable element to consider on on your store. It could be very simple, applying a fixed tax rate (such as VAT) to all your products. It can also be very complex, you may have different tax rates for different products, tax rates may vary depending on where the product is being sent to. Fortunately, Magento can cater for most scenarios.

You may also need to consider how your customers would like tax represented on the frontend of your store. Do they want to prices to be inclusive or exclusive of VAT? or both? How should the tax be broken down in the shopping cart? Again, Magento gives us flexibility with this and we will cover how to manipulate this in this chapter.

Introduction to Tax in Magento

Configuring how you use and display taxes on your Magento Store

An important consideration very early in your store's life is deciding how you would like to enter the prices of your products and how you would like tax displayed to your customers. In this section, we explore the tax settings within your store and how you can manipulate these settings to reflect on how you would like your store to run.

Configuring how you use and display taxes on your Magento Store

Creating Tax Zones in Magento

What is a tax zone?

A tax zone is a geographical area where a certain tax rate is applicable. For example, the UK has VAT and (at time of publishing) this rate is 20% on standard goods. This would be defined and within a tax zone and anyone from the UK would pay 20% tax on goods purchased.

In this section, we will walk through how to set up tax zones and show some examples of zones in action.

Creating Tax Zones in Magento

Setting up Magento Tax Rules

Now you have some Tax Zones you need to create a rule to decide which product and customer types these tax zones are applicable to. Pay particular attention to 'Customer Tax Classes' and 'Product Tax Classes' in this section.

Setting up Magento Tax Rules

Importing and Exporting Tax Rates in Magento

In the previous sections, we looked at how we could create Tax Zones via the admin. Of course, if you have complex tax rules editing and maintaining these can be a tricky task not to mention the opportunity for errors and inconsistencies. In this section, we look at how you can add and maintain your tax zones via spreadsheets and using the import function.

Importing and Exporting Tax Rates in Magento

Creating new Magento tax classes

Some products require a different tax calculation to other products. Likewise, some customers types may be exempt from tax or in some regions require to pay a different rate of tax to others. To deal with this we can create tax classes for products and customer groups and then create a rule to manage these. In this section, we will go through creating new tax classes for products (Product Tax Classes) and customers (Customer Tax Classes).

Creating new Magento tax classes