Tax rules
Tax rules incorporate a combination of product class, customer class, and tax rate. Each customer is assigned to a customer class, and each product is assigned a product class. Commerce analyzes the shopping cart of each customer and calculates the appropriate tax according to the customer and product classes, and the region. The region is based on the customer’s shipping address, billing address, or shipping origin.
Step 1: Complete the tax rule information
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On the Admin sidebar, go to Stores > Taxes > Tax Rules.
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In the upper-right corner, click Add New Tax Rule.
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Under Tax Rule Information, enter a Name for the new rule.
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Choose the Tax Rate that applies to the rule.
To edit an existing tax rate, do the following:
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Hover over the tax rate and click the Edit
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Update the form as needed and click Save.
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To enter tax rates, use either of the following methods:
Method 1: Enter tax rates manually
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Click Add New Tax Rate.
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Complete the form as needed (see Tax zones and rates).
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When complete, click Save.
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Method 2: Import tax rates
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Scroll down to the section at the bottom of the page.
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To import tax rates, do the following:
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Click Choose File and navigate to the CSV file with the tax rates to be imported.
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Click Import Tax Rates.
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To export tax rates, click Export Tax Rates (see Import/Export Tax Rates).
Step 2: Complete the additional settings
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To open the section, click Additional Settings.
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Choose the Customer Tax Class to which the rule applies.
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To edit a customer tax class, click the Edit
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To create a tax class, click Add New Tax Class, complete the form as needed, and click Save.
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Choose the Product Tax Class to which the rule applies.
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To edit a product tax class, click the Edit
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To create a tax class, click Add New Tax Class, complete the form as needed, and click Save.
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When more than one tax applies, enter a number to indicate the priority of this tax for Priority.
If two tax rules with the same priority apply, the taxes are added. If two taxes with different priority settings apply, the taxes are compounded.
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If you want taxes to be based on the order subtotal, select the Calculate off Subtotal Only checkbox.
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For Sort Order, enter a number to indicate the order of this tax rule when listed with others.
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When complete, click Save Rule.
Currency and tax rules demo
Learn about managing currency and tax rules by watching this video: