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To start with the Magento Tax, For New User: You should know the following,

Basic setting for Tax/Vat Configuration

1.Customer Tax Class 2.Product Tax Class 3.Shipping Tax Class 4.Tax Rates 5.Tax Zones

Combine them all and Create Tax Rule, Once done, set default destination.

Brief of above settings:

Customer Tax Class: Customer tax classes are useful to apply the different tax rate to different types of Customer Groups. You can create as many customer tax classes as you need, and assign them to Customer Group.

For Eg: In some Administration, wholesale transactions are not taxed, but retail transactions are. You can associate members of the Wholesale Customer group with the Wholesale tax class.

Setting up the Customer tax Classes: Login in Magento Admin Panel Create the Customer Tax class Link it with the customer Group here Store> Other Settings > Customer Group enter image description here

Product Tax Class: Product Tax Classes are used in calculations to determine the correct tax rate is applied in the shopping cart. When you create a product, it is assigned to a specific tax class. Taxable Goods is a default class in Magento. For example, food might not be taxed, or be taxed at a different rate. That is, You could have different Tax rates on different products such as Clothes, Cosmetics, Medicines, Food Items, home appliances.

Setting up the Product Tax class: Login in Magento Admin Panel Go to Stores > Tax Rules > Add new Rules > Additional Settings

Tax rates and Zones: There is a facility in Magento to define tax according to Country, States, Zip codes. enter image description here

Setting up the Tax Rates and Zones: Login in Magento Admin Panel Store > Configuration > Tax Rates and Zones enter image description here

Tax Rule: Important fields to set a Tax Rule 1. Tax Rate: Defines the rate percentage (%) of Tax applied. 2. Customer Tax Class: Defines Tax for Customers. 3. Product Tax Class: Defines Tax for Product. 4. Priority: Prioritize the Tax Rules as in which one to be applied on top of every other one. Tax rates at the same priority are added, others are compounded. enter image description here

Default Destination/ Country You need to set up default destination here Store > Configuration > Sales > Tax > Default Tax Destination Calculation. enter image description here

Tax Configuration

Store > Configuration > Sales > Tax

Calculation Setting: As per the requirement of your client, you can change the calculation settings here, There is the various combination to calculate/ the tax here. enter image description here

Price Display Setting: You can set up, what price you want to show on you Catalog pages (Including Tax, Excluding Tax, Including Tax and Excluding Tax) enter image description here

Shopping Cart Display Setting: You can set up, what price you want to show on you Cart pages (Including Tax, Excluding Tax, Including Tax and Excluding Tax) enter image description here

Order, Invoices, Credit Memos Display Setting: You can set up, what price you want to show in Magento Admin Order, Invoice and Credit Memos (Including Tax, Excluding Tax, Including Tax and Excluding Tax) enter image description here

Thanks!

closed as unclear what you're asking by Jai, Murtuza Zabuawala, Mohit Kumar Arora, Piyush, Manashvi Birla Mar 4 at 6:41

Please clarify your specific problem or add additional details to highlight exactly what you need. As it's currently written, it’s hard to tell exactly what you're asking. See the How to Ask page for help clarifying this question. If this question can be reworded to fit the rules in the help center, please edit the question.

  • 3
    What is the question? – Greg Mar 1 at 12:16
  • 1
    Voted for close, this is not blog site – Murtuza Zabuawala Mar 1 at 12:50
  • Hi Chandani, Please explain in more details – Birjitsinh Zala Mar 1 at 12:54
  • Please explain the issue – Birjitsinh Zala Mar 1 at 12:58