Tax rules can be set up at the:
- Category level: All products within the selected category will inherit the taxes as per the rules set at the category level
- SKU level: The tax rules set at the product level will override the rules at the category level (if already set)
- Click on Settings icon from the left menu
- Click on Tax Configuration under the heading, Payments, Tax and Invoicing
You will then land on the Tax Configuration page from where you can set up your Tax classes and Tax rules.
A Tax Class represents the following:
- What is the Tax Type – VAT/GST/Sales/CST/Service or Custom
- What is the percentage value – Ex. 10%
- Whether it is for the entire country or specific for the facility of a certain state
- If for a certain state – what is the cross border tax type and percentage
Tax Rules define the mapping of Tax Classes to either complete categories or individual products. Tax Class – Product rules will override any Tax Class – Category rules if present.