CODEWITHSUNDEEP
magento
DBS Ray
DBS Ray

Reputation: 13

Magento Tax Setting

We are running a import/export business on Magento, we currently sales products among Australia, New Zealand and China.

Here is some tax issues confused us.

All the products either from Aus or NZ, the buyers actually from three different destinations, which is Australia, New Zealand and China. As China only play the role of buying, there are no products will flow out China to Australia and NZ.

There is Goods and Service tax (GST) in Aus and NZ with 10% and 15% respectively. However, Australia does NOT have GST on certain products, such as baby foods etc. NZ apply GST on everything.

OK, here are the cases: We need Magento tax to set like this:

If buyers locate in NZ and buy an Aus products, we need to charge 15% GST. If buyers locate in Aus and buy a NZ products, we need to charge the tax based on the type of the products, neither 10% nor nil If buyers locate in China, doesn't matter what products he buy there will be GST charge.

Please....How to set the Tax rules in Magento?? Really confused

Upvotes: 1

Views: 823

Answers (1)

Axel
Axel

Reputation: 10772

  1. Create 2 separate tax rules for AUS and NZ under Sales > Tax > Manage Tax Zones & Rates > Add New Tax Rate

    New Zealand Tax Rule

    New Zealand Tax Rule

    Australia Tax Rule

    Australia Tax Rule

  2. Create two separate Product Tax Classes under Sales > Tax > Product Tax Classes.

    Create one named Taxable Goods. This will be used to apply both NZ and AUS tax to products.

    Create one named Taxable Goods - Excl AUS. This will be used to only apply only NZ tax to products.

  3. Now create two Tax Rules under Sales > Tax > Manage Tax Rules.

    The first tax rule should include both NZ and AUS Tax Rates.

    NZ and AUS Rule

    The second tax rule should include JUST the NZ Tax Rate.

    NZ Rule

  4. Now go to your products and assign the Product Tax Classes. On the Prices tab on the product edit page, look for the Tax Class field.

    Set it to Taxable Goods to charge both NZ and AUS tax.

    Set it to Taxable Goods - Excl AUS if the product is to exclude AUS tax (this is based on the product type)

Upvotes: 3

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