Tax Rules for customer groups on selected products

Question

I have a special needs equipment website, and the UK Tax office have made some items VAT (Tax) exempt, but not to everyone. The customer needs to fill in a form to prove they have a disabled child and send it back to us, so they don't have to pay tax on selected products.

So I need to be able to create a customer group that does not have to pay Tax on selected products.

does anyone know if its possible and if so how?

Answer 1

Yes, this is possible by following these steps:

1. Sales > Tax > Customer Tax Classes - Add a new Customer Tax Class for these customers.
2. Sales > Tax > Product Tax Classes - Add a new Product Tax Class for the selected products.
3. Sales > Tax > Manage Tax Zones and Rates - Add a new Tax Rate, applying it the the United Kingdom and a Rate Percent of "0."
4. Sales > Tax > Manage Tax Rules - Add a new tax rule, applying it to the Customer Tax Class, Product Tax Class and Tax Rate you just created in Steps 1, 2 and 3. This tax rule is what ties together the eligible customers and eligible products and applies the tax rate of "0" to those products.
5. Sales > Tax > Manage Tax Rules - Make sure your existing rules apply the proper Tax Rates for other Customer Tax Classes to the new Product Tax Class you created in Step 2. You want to ensure your non-eligible customers still have the proper tax applied.
6. Customers > Customer Groups - Add a new Customer Group for the eligible customers and assign it the Customer Tax Class that you created in Step 1.
7. Catalog > Manager Products - Bulk edit the products that should be tax exempt for eligible customers and update their Tax Class to the new Product Tax Class you just created in Step 2.

Now as you receive the proper paperwork from your customers, you can add the eligible customers to the Customer Group you created in Step 6 and when they order eligible products, they should not be charged tax.