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How to set up customer tax classes in Magento

 
  1. Navigate to Sales - Tax - Customer Tax Classes
  2. Fill in Class Name
  3. Click Save orange button
  4. Navigate to Customers - Customer Groups
  5. Choose customer group you wish to edit
  6. Choose new tax class from the dropdown menu
  7. Click Save Customer Group orange button

One thing is sure – the entire process of configuring taxes on your online store means outbursts are bound to happen.

Which, you will probably agree, sometimes is a bit to often.

From tax classes to taxable goods, from tax zones to configuring tax settings to appear in shopping cart – we got you covered.

Before we start, a small note – this tutorial will give you an overview on how to manage your tax related Magento configuration, without going into specific details such as tax rates for specific products, state related taxes etc.

Setting up customer tax classes in Magento

Different customers can also be a subject of different tax regulations and require different set ups when it comes to selling online.

It will rarely happen that all your customers belong to the same customer group – you will have wholesale group, retailer group, group for those that will not log in, newsletter subscribers etc.

To start set up, navigate once more to Sales and choosing Customer Tax Classes from the menu.

How to add new Customer Tax Class in Magento

To start adding new class, click orange Add new button located in the upper right corner of the page and name your new class. We showed it in the screenshot above.

Don’t forget to save your class once you are done. Small note – retailer group will be part of your default Magento installation.

And another thing to remember – same as with product tax class, your customer tax class can not be removed if previously you made it part of a tax rule.

unable to delete customer class

Overall, the procedure is very similar to the one when we had to assign tax class to products – we now need to do the same thing for customers on our online store.

You can perform all necessary settings under CustomersCustomer groups.

Take a look at the screenshot below:

Managing customer groups in Magento

Once you are there, choose customer group that you wish to apply your newly created customer tax class to.

Let’s say, for the purpose of this tutorial that our regular customer tax class will be applied to our special customer group titled – Not Logged In.  

How to assign customer tax class to customer group

Click to desired group to continue setting it up. Next to Tax Class tab, open dropdown menu and choose Regular Customer tax class.

That’s great work, and now that we are done, let’s recap!

Start from the bottom and go all the way to top this time – first, set up your product tax classes, then make sure all your products have the correct product tax.

 

Note that other than these settings, there is so much more when it comes to setting up taxes in Magento.

That is why, in order to keep a clear overview – setting up Tax Zones and Rates, as well as setting up Tax Rules, will be a subject of a separate tutorial.

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