Denotes questions related to Magento Tax Calculation
Magento has options that allow you to set up a complex system of taxation. You can define product tax classes and assign them to products, set up customer tax classes and associate customer groups with a particular tax class, you can set up the percent of the tax depending on the region/state and country of the customer (it can be based on the shipping or billing address, or on the shipping origin). Tax rules combine all these aspects to determine the actual tax based on the products in the cart (and the tax class assigned to these products), the customer group to which the customer belongs and the billing/shipping address of the customer. You can also apply more than one tax rule in the cases when compound taxation is required.