Magento | Adobe Commerce VAT Configuration

A few posts ago, I shared with you the Step by Step Guide: Tax Configuration in Magento | Adobe Commerce. 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 | Adobe Commerce.  

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:

Step 4. Apply Tax Classes to Products 

1. Catalog > Products.
   
2. Open a product from your catalog in edit mode.
   
3. On the General page, find the Tax Class field. Then, select the VAT Class that applies to the product.
   
4. When complete, click the Save button.

Need Help With Tax Configuration?

Alex Yermak

About the author:

E-commerce Journalist at Mobecls
2+ years experience

Feel free to ask me anything about this post in the comments below