A few posts ago, I shared with you the Step by Step Guide: Tax Configuration in Magento 2. However, I didn’t pay a lot of attention to European taxes. Today we’re going to make it right and deal with the VAT configuration in Magento 2.
VAT Configuration
As an example, we’ll set up Value-Added Tax for France.
Step 1. New Create Tax Rate
1.Admin Sidebar > Stores > Tax Zone and Rate > Add New Tax Rate
2.Create two Tax Rates:
a. Tax Identifier: France-Standard VAT
Country: France
State/Region: *
ZIP/Postal Code: *
Rate: 20
b.Tax Identifier: France-Reduced VAT
Country: France
State/Region: *
ZIP/Postal Code: *
Rate: 5
Step 2. Create New Tax Rule
1.Admin Sidebar > Stores > Tax Rules > Add New Tax Rule
2.Create the following Tax Rules:
a. Retail-France-StandardVAT
Settings:
Customer Class: Retail Customer
Tax Class: VAT-Standard (add new product tax class by clicking Add New Tax Class)
Tax Rate: France-StandardVAT
Priority: 0
Sort Order: 0
b. Retail-France-ReducedVAT
Settings:
Customer Class: Retail Customer
Tax Class: VAT Reduced
Tax Rate: France-ReducedVAT (add new product tax class by clicking Add New Tax Class)
Priority: 0
Sort Order: 0
Step 3. Configure Tax Settings for France
1.Admin Sidebar > Stores > Configuration > Sales > Tax
2.Complete general settings the next way:
FIELD | RECOMMENDED SETTING |
Tax Classes | Default |
Calculation Settings | |
Tax Calculation Method Based On | Total |
Tax Calculation Based On | Shipping Address |
Catalog Prices | Including Tax |
Shipping Prices | Including Tax |
Apply Customer Tax | After Discount |
Apply Discount on Prices | Including Tax |
Apply Tax On | Custom Price (if available) |
Default Tax Destination Calculation | |
Default Country | France |
Default State | |
Default Postal Code | * (asterisk) |
Shopping Cart Display Settings | |
Include Tax in Grand Total | Yes |
Fixed Product taxes | |
Enable FPT | Yes |
All FPT Display Settings | Including FPT and FPT description |
Apply Discounts to FPT | No |
Apply Tax to FPT | Yes |
Include FPT in Subtotal | Yes |
Step 4. Apply Tax Classes to Products
- Catalog > Products.
- Open a product from your catalog in edit mode.
- On the General page, find the Tax Class field. Then, select the VAT Class that applies to the product.
- When complete, click the Save button.
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About the author:
E-commerce Journalist at Mobecls
2+ years experience
Feel free to ask me anything about this post in the comments below