Tax rules set is a very essential type of configuration in Magento 2. On every single order, users are expected to apply the tax rules. Also, the tax rules must be set in such a way that it associated with customer tax class as well as product tax class at a certain rate. Once you set the rules, Magento 2 will automatically calculate the tax amount for each order of the store.
Also read: How to Enable VAT field at Magento 2 Checkout?
This tutorial will guide you through the whole process of setting up tax rules in Magento 2.
How to Set Up Tax Rules in Magento 2
Step 1. Log in to the back-end of the Magento 2 store
Step 2. From the Admin sidebar, navigate to Stores > Taxes > Tax Rules
Step 3. Click on the Add New Tax Rule button on the upper right corner of the workspace.
Step 4. Explore the Tax Rule Information section:
Enter the name for the new rule as you would like to name it in the box Name.
In the drop-down list of Tax Rate, select one of the options to activate the rule. Here, you are also facilitated to edit the existing tax rate by clicking on the editing icon at the right-hand side at the end of each tax rate row. Don't miss to save the changes. One can also add a new tax rate by clicking on the Add New Tax Rate button.
Here, we will also guide you about changing the tax rate.
Step 5. Configure the Additional Settings section
Explore the Additional Settings section in the Tax Rule tab.
In the Customer Tax Class,
- Click the Edit icon to modify and don't forget to Save.
- Click Add New Tax Class to create more tax classes and enter all necessary information. Click Save to finish.
In the Product Tax Class,
- Click the Edit icon to modify and don't forget to Save.
- Click Add New Tax Class to create more tax classes and enter all necessary information. Click Save to finish.
In the Priority section, set a hierarchy of the priority to enable the tax applied.
Mark the Calculate off Subtotal Only to check out tax on the order subtotal value.
Arrange Sort Order to set the list of tax rules.
Click Save Rule to finish.
How to Edit Tax Rates in Magento 2?
In order to edit the tax rate, we will click on the Edit icon like this:
Tax rule editing can be done by two methods.
Manual Editing and by Importing Tax Rates.
1. Manual Editing
- Click the Add New Tax Rate button.
- Complete all the information required for the form.
- Click Save to save all the procedures.
2. Import the Tax Rates from the existing file
Explore the Adding Settings section:
- Hit the Choose File button to upload the prepared CSV file from the browser.
- Click the Import Tax Rate button.
- Click the Export Tax Rate button to export the file.
And it's done.
Also read: How to Add or Create a New Tax Rate in Magento 2?
You have everything you might require for setting up tax rules on your Magento 2 store. Go ahead and reduce your stress related to tax rules on your store. We hope this tutorial was enough. If we missed out anything, feel free to reach us out today!