Setting Up TaxesMagento Go uses both customer and product tax classes to determine the rules which are used as the basis of tax calculations. Tax rules are a combination of customer tax class, product tax class, and applicable tax rates.
Value Added Tax (VAT)This topic provides a sample procedure for setting up a 20% VAT in the U.K. for sales to retail customers. For other tax rates and countries, follow the general procedure but enter specific information that corresponds to your country, VAT rate, customer types, and so on.
Retail Tax CalculationsMagento Go allows you to set tax zones and rates, tax classes for products and customers, and tax rules for your store. This example provides instructions for setting up taxes for retail customers and taxable goods for Los Angeles County, California.
Compound Tax RulesFor compound taxes, the total cost of a product or service is taxed at one rate, and then the total of that amount, including the first tax amount, is taxed a second time. For example, in Quebec and Prince Edward Island (PEI) in Canada, the Canada General Sales tax is calculated and added to the price of a product. Then the Quebec or PEI provincial tax rate is calculated for that total amount, which is added to the previous total. Compound tax is also known as stacked tax.
Understanding Tax SettingsMagento Go allows you to set tax zones and rates, tax classes for products and customers, and tax rules. These articles and videos will help you learn how to configure the appropriate taxes for your Magento Go store.
Deleting Tax RatesTax rates can be deleted individually or as a group. The first method can be used to delete a single tax rate while the record is open in edit mode. The second method can be used to delete selected records as a group.
Tax On ShippingTax on Shipping makes it easy to meet complex regional tax requirements, and can be used with any shipping method, existing tax classes, and rules. Tax on Shipping supports both inclusive and exclusive pricing, and includes a variety of tax calculations.
Tax RulesMagento Go analyzes the shopping cart of each customer to calculate the appropriate tax. The tax is based on a combination of the customer and product tax classes, and the region where the product was purchased.