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Tax Rules

Tax rules help OroCommerce find the correct tax rate that should be used for the products listed in the purchase order by matching the product tax code that indicates tax status of the product, customer tax code that indicates tax status of the buying company, and tax jurisdiction where the tax is due. OroCommerce supports tax exemption mechanism: you can set zero tax rate for some customers and/or products.

Basically, in OroCommerce, tax rule binds the following items:

  • tax jurisdiction – an address, usually a state in a country that have defined taxation policies that determine when and how the company should pay their sales or VAT tax, and what rates should be used, depending on the tax status of the products you sell and parties you sell to.
  • customer tax code – a label for a customer or customer group that follow similar taxation rules in at least one tax jurisdictions.
  • product tax code – a label for a group of products that have similar taxation rules in at least one tax jurisdictions.
  • tax rate – the percentage of the sales income that should be payed as a tax in the particular tax jurisdiction for a certain type of products sold to a group of customers with the same tax status.

View and Filter Tax Rules

To view all Tax Rules, navigate to Taxes > Tax Rules in the main menu.

Note

To handle big volume of data, use page switcher, increase View Per Page or use filters to narrow down the list to just the codes you need.

The following information about the Tax Rules is available in the Tax Rules list:

Name Description
ACCOUNT TAX CODE None.
PRODUCT TAX CODE None.
TAX JURISDICTION None.
TAX None.
DESCRIPTION None.
CREATED AT None.
UPDATED AT None.

Next steps

You can perform the following actions with every item in the Tax Rules list:

  • View a Tax Rule details: Click on the item to open its details page.

    OR

    Alternatively: Hover over the More Options menu to the right of the item and click the to open its details page.

  • Edit a Tax Rule details: Hover over the More Options menu to the right of the item and click the to start editing its details.

  • Delete a Tax Rule: Hover over the More Options menu to the right of the item and click the to remove the Tax Rule.

  • Create Tax Rule: Click Create Tax Rule to the top right from the list.

Create a Tax Rule

To create tax rules for a particular tax jurisdiction:

  1. Create a tax jurisdiction (country, state and a range of zip codes) where a special taxation rules apply.

  2. Create customer tax codes for every group of buyers that have fixed tax rates in this tax jurisdiction. Link the customer groups to their respective tax codes.

  3. Create product tax codes for every group of products that have fixed tax rates in this tax jurisdiction. Ensure that these tax codes are assigned to the products.

  4. Create all the tax rates defined by the tax jurisdiction for the customers you are serving and products you are selling.

  5. Finally, for every valid combination of the tax rates, product types and customer types, create a tax rule:

    1. Navigate to Taxes > Tax Rules and click Create Tax Rule.

    2. In the lists select the Account Tax Code (customer tax code), product tax code, tax jurisdiction, and tax (tax rate). Optionally, add description of the tax rate applied.

    3. Click Save or Save and Close.

View Tax Rule Details

To view a Tax Rule details:

  1. Navigate to Taxes > Tax Rules in the main menu.

  2. Find the line with the necessary Tax Rule and click on it.

    The following information is available immediately:

    • Account Tax Code
    • Product Tax Code
    • Tax Jurisdiction
    • Tax (rate)
    • Description

Next steps

You can perform the following actions with a Tax Rule:

  • Edit a Tax Rule details: Click Edit to the top right of the page.
  • Delete a Tax Rule: Click Delete to the top right of the page.

Edit a Tax Rule

To edit the Tax Rule:

  1. Navigate to Taxes > Tax Rules in the main menu.
  2. Hover over the More Options menu to the right of the item and click the to start editing its details. The following page opens:
  1. Update the links between the tax rule and the tax rule components (tax rate, tax jurisdiction, customer tax code and product tax code) to modify the Tax Rule.
  2. Click Save on the top right of the page.

The Tax Rule is updated.