Tax guidelines by country

U.S. tax configuration

These recommended settings can be used for most tax configurations for stores within the United States.

Tax classes

Calculation settings

Default tax destination calculation

Price display settings

Shopping cart display settings

Orders, invoices, credit memos, and display settings

Fixed product taxes (FPT)

UK tax configuration

These recommended settings can be used for most tax configurations for stores within the United Kingdom.

UK B2C tax configuration

U.K. B2B tax configuration

Canada tax configuration

The following example shows how to set up GST tax rates for Canada and PST tax rates for Saskatchewan, with tax rules that calculate and display the two tax rates. This information outlines an example configuration; be sure to verify the correct tax rates and rules for your tax jurisdictions. When setting up taxes, set the store scope to apply the configuration to all applicable stores and websites.

• Fixed product tax is included for relevant goods as a product attribute.
• In Quebec, PST is referred to as TVQ. If you want to set up a rate for Quebec, make sure to use TVQ as the identifier.

Step 1: Complete tax calculation settings

1. On the Admin sidebar, go to Stores > Settings > Configuration.

2. For a multisite configuration, set Store View to the website and store that is the target of the configuration.

3. In the left panel, expand Sales and choose Tax.

4. Click to expand each section on the page and complete the following settings:

Tax Calculation Settings

Tax Classes

Default Tax Destination Calculation

Shopping Cart Display Settings

Fixed Product Taxes

Step 2: Set up Canadian Goods & Services Tax (GST)

To print the GST number on invoices and other sales documents, include it in the name of the applicable tax rates. The GST appears as part of the GST amount on any order summary.

Manage Tax Zones & Rates

Step 3: Set up Canadian Provincial Sales Tax (PST)

Set up another tax rate for the applicable province.

Tax Rate Information

Step 4: Create a GST tax rule

To avoid compounding the tax and to correctly display the calculated tax as separate line items for GST and PST, set different priorities for each rule and select the Calculate off subtotal only checkbox. Each tax appears as a separate line item, but the tax amounts are not compounded.

Tax Rule Information

Step 5: Create a PST Tax Rule for Saskatchewan

For this tax rule, make sure to set the priority to 0 and select the Calculate off subtotal only checkbox. Each tax appears as a separate line item, but the tax amounts are not compounded.

Tax Rule Information

Step 6: Save and test the results

1. When complete, click Save Config.

2. Return to your storefront and create a sample order to test the results.

EU tax configuration

The following example depicts a store based in France that sells 100k+ Euros in France and 100k+ Euros in Germany.

• Tax calculations are managed at the website level.
• Currency conversion and tax display options are controlled individually at the store view level (Select the Use Website checkbox to override the default).
• By setting the default tax country, you can dynamically show the correct tax for the jurisdiction.
• Fixed product tax is included for relevant goods as a product attribute.
• It might be necessary to edit the catalog to ensure that it shows up in the correct category/website/store view.

Step 1: Create three product tax classes

For this example, it is assumed that multiple VAT-Reduced product tax classes are not needed.

1. Create a VAT-Standard product tax class.

2. Create a VAT-Reduced product tax class.

3. Create a VAT-Free product tax class.

Step 2: Create tax rates for France and Germany

Create the following tax rates:

Step 3: Set up the tax rules

Create the following tax rules:

Step 4: Set up a store view for Germany

1. On the Admin sidebar, go to Stores > Settings > All Stores.

2. Under the default website, create a store view for Germany.

3. Next, do the following:

   • On the Admin sidebar, go to Stores > Settings > Configuration.

   • In the upper-left corner, set Default Config to the French store.

   • On the General page, expand the Countries Options section, and set the default country to France.

   • Complete the locale options as needed.

4. In the upper-left corner, choose the German Store View.

5. On the General page, expand Countries Options and set the default country to Germany.

6. Complete the locale options as needed.

Step 5: Configure tax settings for France

Complete the following general tax settings:

Step 6: Configure tax settings for Germany

1. On the Admin sidebar, go to Stores > Settings > Configuration.

2. In the upper-right corner, set Store View to the view to the German store and click OK to confirm.

3. In the left panel, expand Sales and choose Tax.

4. In the Default Tax Destination Calculation section, do the following:

   • Clear the Use Website checkbox after each field,

   • To match your site’s Shipping Settings point of origin, update the following values:

     • Default Country
     • Default State
     • Default Post Code

     This setting ensures that tax is calculated correctly when product prices include tax.

     

5. When complete, click Save Config.