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Training Thursday: Learn How to Create Tax Codes, Jurisdictions, and Tax Rules in OroCommerce

July 6, 2017 | Oro Team

In today’s edition of our Training Thursday series, we’ll talk about how to manage your tax codes and rules within the OroCommerce application.

B2B businesses that sell online must manage taxes or VAT in the areas they do business in. This can be challenging if your business sells to multiple countries and offers diverse product sets. For example, while some goods like food products are tax-free, others are taxed at varying rates depending on the product. In OroCommerce, tax management functionalities help B2B merchants proactively maintain compliance with tax rules for specific regions, states, and products.

The new tutorial videos uploaded to the Media Library educate OroCommerce users on how tax codes and jurisdictions are used in the application, and how to configure tax rules based on these identifiers.

The training videos will explain the following:

  • What are Customer and Product Tax Codes;
  • Which customers are subject to taxes;
  • Which products are taxable and non-taxable;
  • How to create customers and product tax codes and apply them;
  • What are tax jurisdictions and tax rates and how to create them;
  • How to create tax rules

Below is an overview of each video tutorial.

How to Create Tax Codes and Jurisdictions

In OroCommerce, you can assign tax codes to both customers and products. Customer tax codes specify tax obligations customers or customer groups are subject to when purchasingg goods in specific geographies or jurisdictions. Product tax codes are used to label products and product categories with the same tax rules.

The video demonstrates how to create customer tax codes for exempt and non-exempt customers and how to create product tax codes for taxable and non-taxable items. It also showcases how to create different tax jurisdictions for businesses shipping all around the world.  

How to Create Tax Rules

In OroCommerce, tax rules are used to set the correct tax rate for products. An appropriate tax rate is defined based on the respective product and customer tax codes and the tax jurisdiction where the tax is due.

This video explains how to create tax rules and set the tax rates and codes for certain customer groups. Specifically, it addresses the following cases:

  • A non-exempt customer pays tax for their state on taxable items.
  • A non-exempt customer who isn’t subject to sales taxes on non-taxable items.
  • A customer exempt from taxes not paying taxes on taxable items.

We hope you’ve found today’s video stack useful. To obtain more details on OroCommerce tax management functionality and eCommerce PCI compliance, refer to the Taxes section of the OroCommerce User Guide.

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