Tutorial: Manage Magento Tax Zones and Rules
The first thing you will have to do is set-up the Tax Zones. In this case we’re setting up a website which will operate in the United Kingdom and Republic of Ireland. This means we need to two Tax Zones each with it’s own rate of VAT.
Tax Zones and Rates
Login to Magento to to Sales > Tax > Manage Tax Zones & Rates. You may which to delete the default zones which are already there. Click on Add new tax zone Enter an identifier for your tax rate, select the relevant country from the drop down. Enter the rate in the bottom box, for example “17.5″ for current UK vat or “21.00″ for the Irish Republic.
You will need to repeat this step for all of the tax zones you are registered to operate in. Depending on your country you may need to set tax in relation to individual provinces or states, or simply use a star “*” to apply to all in your chosen country.
Tax Rules
The next step is to set-up a rule to apply the tax rates you have set-up in the previous step. Click on Sales > Tax > Manage Tax Rules. Again, you can delete the existing rules or replace them with your new ones. Click on Add new tax rule. Give your rule a name, choose the customer group, choose what you want to apply the tax to. Then you will have to select the rule you want to apply and click on Save rule.
Additional set-up
By default your tax rules will be applied according to the customers shipping address. You may also want to clarify how tax is calculated in relation to product promotions and how tax is applied to shipping. These settings can be applied by going to System > Configuration > Tax.
That’s it.
Important! Please note VAT rates were correct at time of publishing. For the latest please visit the United Kingdom’s HM Revenue & Customs or the Republic of Ireland’s Office of the Revenue Commissioner.
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Written on 4 March 2010 at 8.30 pm, by Keith Greer. "Tutorial: Manage Magento Tax Zones and Rules" was posted in Magento with the tags Magento, tutorial . 1 Comment
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