A Complete Tutorial On Warning Messages Settings For Magento 2 Store

Some blends of tax-related options might be confusing to customers and activate a warning. These conditions might happen when the tax calculation method is set to Total or Row, and the prices that both exclude and include tax are presented to the customer or a tax on an item basis in the cart. Because the tax calculation is rounded, the price that displays in the cart might differ from the price that customers think they have to pay.

If your tax calculation is based on a problematic configuration, the following warnings appear:

  • Warning. Tax discount configuration might result in different discounts than a customer might expect for store(s); Europe Website (French), Europe Website (German). Please see source for more details.
  • Warning. Tax configuration can result in rounding errors for store(s): Europe Websites (French), Europe Websites (German).

Calculation Settings

Use the following tables for reference when configuring tax calculation settings:

Tax Calculation Method Based On: Excluding Tax

Tax Excluded

PRICE DISPLAY UNIT PRICE ROW TOTAL TOTAL
Tax Class for Shipping Shipping (is taxed)
Excluding tax OK OK OK
Including tax OK OK OK
Including and Excluding tax OK OK Warning

Catalog Prices: Including Tax

Tax Included

PRICE DISPLAY UNIT PRICE ROW TOTAL TOTAL
Excluding tax OK OK OK
Including tax OK OK OK
Including and Excluding tax OK Warning Warning
A Complete Tutorial On Warning Messages Settings For Magento 2 Store
Calculation Settings

Discount Settings

To avoid issues when configuring taxes to discounts, we strongly recommend that you use the following settings.

Recommended Settings

FIELD RECOMMENDED SETTING
Apply Customer Tax After Discount
Apply Discount on Prices
US and Canada Excluding Tax
EU Including Tax

 

A Complete Guidelines In EU Tax Configuration For Magento 2 Store

In this article, we will describe a guideline in EU Tax configuration for Magento 2 store based in France that sells >100k Euros in France and > 100k Euros in Germany.

  • Tax calculations are managed at the website level.
  • Currency conversion and tax display options are controlled individually at the store view level (Click the Use Website checkbox to override the default).
  • You can dynamically show the correct tax for the jurisdiction by setting the default tax country.
  • Fixed product tax is included for material goods as a product attribute.
  • To ensure that it shows up in the correct category/website/store view, it might be necessary to edit the catalog.

Step 1: Create Three Product Tax Classes

In this example, the multiple VAT-Reduced product tax classes are unecessary.

  1. Create a VAT-Standard product tax class.
  2. Create a VAT-Reduced product tax class.
  3. Create a VAT-Free product tax class.

Step 2: Create Tax Rates for France and Germany

Create the following tax rates:

Tax Rates

TAX RATE SETTING
France-Standard VAT
Country: France
State/Region: *
ZIP/Postal Code: *
Rate: 20%
France-Reduced VAT
Country: France
State/Region: *
ZIP/Postal Code: *
Rate: 5%
Germany-Standard VAT
Country: Germany
State/Region: *
ZIP/Postal Code: *
Rate: 19%
Germany-Reduced VAT
Country: Germany
State/Region: *
ZIP/Postal Code: *
Rate: 7%

Step 3: Set Up the Tax Rules

Create the following tax rules:

Tax Rules

TAX RULE SETTING
Retail-France-Standard VAT
Customer Class: Retail Customer
Tax Class: VAT-Standard
Tax Rate: France-Standard VAT
Priority: 0
Sort Order: 0
Retail-France-Reduced VAT
Customer Class: Retail Customer
Tax Class: VAT Reduced
Tax Rate: France-Reduced VAT
Priority: 0
Sort Order: 0
Retail-Germany-Standard VAT
Customer Class: Retail Customer
Tax Class: VAT-Standard
Tax Rate: Germany-Standard VAT
Priority: 0
Sort Order: 0
Retail-Germany-Reduced VAT
Customer Class: Retail Customer
Tax Class: VAT-Reduced
Tax Rate: Germany-Reduced VAT
Priority: 0
Sort Order: 0

Step 4: Set Up a Store View for Germany

On the admin sidebar click Stores > All Stores

Create a store view for Germany. Follow these steps:

  • Stores > Configuration. Set Default Config to the French store.
  • On General Page, open the Countries Options tab and set the default country to “France.”
  • Complete the locale options as needed.

In the upper-left corner, choose the German Store View and follow these steps:

  • On the General page, open Countries Options, and set the default country to “Germany.”
  • Complete the locale options as needed.

Step 5: Configure Tax Settings for France

Complete the following General tax settings:

General Settings

FIELD RECOMMENDED SETTING
TAX CLASSES
Tax Class for Shipping Shipping (shipping is taxed)
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 6: Configure Tax Settings for Germany

Click Stores > Configuration. In the upper-right corner, set Store View to the view to the German store and click OK. On the left of the panel under Sales, click Tax.

In the Default Tax Destination Calculation tab, follow these steps:

  • Default Country
  • Default State
  • Default Post Code

This setting ensures that tax is calculated correctly when product prices include tax.

EU Tax Configuration For Magento 2
Default Tax Destination Calculation

Click Save Config.

A Complete Guidelines In Canadian Tax Configuration For Magento 2

In this article, we will describe a tutorial on setting up GST tax rates for Canada and PST tax rates for Saskatchewan, with tax rules that calculate and display the two tax rates. You can follow these steps from this tutorial, make sure to follow the tax rates and regulations for your tax jurisdictions. When setting up taxes, set the store scope to apply the configuration to all applicable stores and websites.

  • Fixed product tax is included for material goods as a product attribute.
  • In Quebec, PST is referred to as TVQ. If you want to set up a rate for Quebec, remember to use TVQ as the identifier.

Step 1: Complete Tax Calculation Settings

On admin sidebar, click System > Configuration. On the left of the panel, under Sales, click Tax. Open each section and follow these settings:

Tax Calculation Settings

FIELD RECOMMENDED SETTING
Tax Calculation Method Based On Total
Tax Calculation Based On Shipping Address
Catalog Prices Excluding Tax
Shipping Prices Excluding Tax
Apply Customer Tax After Discount
Apply Discount on Prices Excluding Tax
Apply Tax On Custom Price (if available)

Tax Classes

FIELD RECOMMENDED SETTING
Tax Class for Shipping Shipping (shipping is taxed)

Default Tax Destination Calculation

FIELD RECOMMENDED SETTING
Default Country Canada
Default State (as appropriate)
Default Postal Code * (asterisk)

Shopping Cart Display Settings

FIELD RECOMMENDED SETTING
Include Tax in Grand Total Yes
Display Full Tax Summary Yes
Display Zero in Tax Subtotal Yes

Fixed Product Taxes

FIELD RECOMMENDED SETTING
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 No

Step 2: Set Up Canadian Goods & Services Tax (GST)

To print the GST number on invoices and other sales documents, add it to the name of the applicable tax rates. The GST will display as part of the GST amount on any order summary.

Manage Tax Zones & Rates

FIELD RECOMMENDED SETTING
Tax Identifier Canada-GST
Country Canada
State * (asterisk)
Zip/Post is Range No
Zip/Post Code * (asterisk)
Rate Percent 5.0000

Step 3: Set Up Canadian Provincial Sales Tax (PST)

Set up another tax rate for the relevant province.

Tax Rate Information

FIELD RECOMMENDED SETTING
Tax Identifier Canada-SK-PST
Country Canada
State Saskatchewan
Zip/Post is Range No
Zip/Post Code * (asterisk)
Rate Percent 5.0000

Step 4: Create a GST Tax Rule

To correctly display the calculated tax as separate line items for GST and PST and to avoid compounding the tax, you must set different priorities for each rule, and tick the “Calculate off subtotal only” checkbox. Each tax displays as a separate line item, but the tax amounts are not compounded.

Tax Rule Information

FIELD RECOMMENDED SETTING
Name Retail-Canada-GST
Customer Tax Class Retail Customer
Product Tax Class Taxable Goods

Shipping

Tax Rate Canada-GST
Priority 0
Calculate off subtotal only Select this checkbox.
Sort Order 0

Step 5: Create a PST Tax Rule for Saskatchewan

For this tax rule, set the priority to 0 and tick the “Calculate off subtotal only” checkbox. Each tax displays as a separate line item, but the tax amounts are not compounded.

Tax Rule Information

FIELD RECOMMENDED SETTING
Name Retail-Canada-PST
Customer Tax Class Retail Customer
Product Tax Class Taxable Goods

Shipping

Tax Rate Canada-SK-PT
Priority 1
Calculate off subtotal only Select this checkbox.
Sort Order 0

Step 6: Save and Test the Results

  1. Click Save Config button after completed.
  2. Return to your storefront, and create a sample order to test the results.

A Complete Guidelines In US Tax Configuration For Magento 2 Store

Store administrators can use these recommended settings for most tax configurations for stores within the United States.

Tax Classes

TAX CLASS RECOMMENDED SETTING
Tax Class for Shipping None

Calculation Settings

CALCULATION RECOMMENDED SETTING
Tax Calculation Method Based On Total
Tax Calculation Based On Shipping Origin
Catalog Prices Excluding Tax
Shipping Prices Excluding Tax
Apply Customer Tax After Discount
Apply Discount on Prices Excluding Tax

Default Tax Destination Calculation

SETTING RECOMMENDED SETTING
Default Country United States
Default State State where business is located.
Default Post Code The postal code that is used in your tax zones.

Price Display Settings

SETTING RECOMMENDED SETTING
Display Product Prices in Catalog Excluding Tax
Display Shipping Prices Excluding Tax

Shopping Cart Display Settings

SETTING RECOMMENDED SETTING
Display Prices Excluding Tax
Display Subtotal Excluding Tax
Display Shipping Amount Excluding Tax
Display Gift Wrapping Prices Excluding Tax
Display Printed Card Prices Excluding Tax
Include Tax in Grand Total Yes
Display Full Tax Summary Yes
Display Zero Tax Subtotal Yes

Orders, Invoices, Credit Memos, Display Settings

SETTING RECOMMENDED SETTING
Display Prices Excluding Tax
Display Subtotal Excluding Tax
Display Shipping Amount Excluding Tax
Include Tax in Grand Total Yes
Display Full Tax Summary Yes
Display Zero Tax Subtotal Yes

Fixed Product Taxes

SETTING RECOMMENDED SETTING
Enable FPT No, except in California.

Complete Guidelines Of International Tax For Magento 2 Store

U.S. Tax Configuration

TAX OPTION RECOMMENDED SETTING
Load catalog prices Excluding tax
FPT No, because FPT is not taxed.
Tax based on Shipping origin
Tax Calculation On the total
Tax shipping available No
How To Apply Discount Before tax
Comment All tax zones are the same priority; ideally, a zone for state and one or more zones for zip code lookup.

UK B2C Tax Configuration

TAX OPTION RECOMMENDED SETTING
Load catalog prices Excluding tax
FPT Yes, including FPT and description
Tax based on Shipping address
Tax Calculation On the total
Tax shipping available Yes
How To Apply Discount Before tax, discount on prices, including tax.
Comment For merchants marking up supplier invoices (including VAT).

U.K. B2B Tax Configuration

TAX OPTION RECOMMENDED SETTING
Load catalog prices Excluding tax
FPT Yes, including FPT and description
Tax based on Shipping address
Tax Calculation On item
Tax shipping available Yes
How To Apply Discount Before tax, discount on prices, including tax.
Comment For B2B merchants to provide more straightforward VAT supply chain considerations. Tax calculation on the row is also valid; however, check with your taxing jurisdiction. Setup accepts a merchant is in the supply chain and that other vendors use goods sold for VAT rebates and so on. This makes it easy to recognize tax by item for faster rebate generation. Note that some jurisdictions require different rounding strategies not currently supported by Magento and that not all authorities allow item or row level tax.

Canada Tax Configuration

TAX OPTION RECOMMENDED SETTING
Load catalog prices Excluding tax
FPT Yes, including FPT, description, and apply the tax to FPT.
Tax based on Shipping origin
Tax Calculation On the total
Tax shipping available Yes
How To Apply Discount Before tax
Comment Merchants located in a GST/PST province (Montreal) should generate one tax rule and show a combined tax amount.

If you have any questions, make sure to consult a qualified tax authority. For information about the tax requirements of specific provinces, see the following:

Revenu Québec

Government of Saskatchewan

Manitoba Information for Vendors