Store administrators can assign Tax Classes to customers, products, and shipping. As I said in the previous article, the shopping cart of each customer would be analyzed and calculated the appropriate tax according to the class of the customer, the class of the products in the cart, and the region. When the tax rule is defined, new tax classes can be created.
Store administrators can create as many customer tax classes as they need, and assign them to customer groups. For example, in some locales, wholesale transactions are not taxed, but retail sales are. You can assign members of the Wholesale Customer group with the Wholesale tax class.
Store manager use Product classes in calculations to decide the correct tax rate is applied in the shopping cart. Each created product will be assigned to a specific tax class. For example, food might not be taxed, or be taxed at a different rate.
Store administrators have to designate a specific product tax class for shipping if their stores charge an additional shipping tax. Then in the configuration, specify it as the shipping tax class.
In Sales Configuration, store owners can set the shipping tax class, and the default tax classes for products and customers.
Follow these steps to configure tax classes:
On the admin sidebar, click Stores. Under Settings, click Configuration. On the left of the panel under Sales, click Tax. Open Tax Classes tab, then select the tax class for each of the following:
- Set Tax Class for Shipping
- Default Tax Class for Product
- Default Tax Class for Customer
Click Save after completed.
Above is an article on tax classes and how to configure tax classes in Magento 2. We hope that you can find useful information about tax classes in this article. If you have any question, feel free to leave a comment. Keep tracking Magestandard for more useful Magento 2 article.