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How to manage tax rules in Magento
- Navigate to Sales - Tax - Manage Tax Rules
- Fill in: Name, Customer Tax Class
- Select Product Tax Class
- Select Tax Rate
- Click Save orange button
Finally, we come to the point where you realize why it was important not to skip any step under Tax menu items.
Not only that, but not setting them up in any other order but going from product tax classes, over customer tax classes, setting up tax zones and rates and leaving tax rules to be your final step is something that can also cause mishaps.
Tax rules are the ones that will unite all previous steps – by creating a rule you will make everything finally work and show up as you expect on your storefront.
Your customers will get their products with taxes properly calculated and your business will run smooth.
To set up tax rules in Magento, start by navigating to Sales, choosing Tax and clicking Manage Tax Rules.
As always, click Add New Tax Rule orange button in the upper right corner of the screen.
Start by setting up Name for your new tax rule and assign it to a specific customer class. See the screenshot for a better understanding.
Next, connect it to its belonging tax class – we chose VAT 20%.
Also, make sure you do not miss out to connect it to corresponding tax rate we have previously set up.
Multiple selections will be available if you hold Cmd button while clicking on the desired country.
Take a look:
We suggest you leave “zero” for both fields at the bottom, but in case you wish taxes to show per certain priority, go ahead and prioritize them by entering values.
Once more, click Save orange button to apply your changes and you are all done.
Congratulations, you have successfully created your new tax rule!