Managing Taxes

Magento provides a variety of options to help you meet the tax requirements for your locale.
Magento also supports the calculation of Value-Added Tax (VAT) for business-to-business
transactions in the European Union. Admin permissions can be set to restrict access to tax
resources, based on the business “need to know.”
Tax classes are used to define “tax rules.” Tax rules incorporate a combination of product class,
customer class and tax zone, and rate. Each type of customer can be assigned a customer class
when you define them, and each product is assigned a tax class. Magento analyzes the
shopping cart of each customer and calculates the appropriate tax according to the class of the
customer, the class of the products in the shopping cart, and the region (as determined by the
customer’s shipping address, billing address or shipping origin).
Important! No guarantee is made regarding any information in this guide. Please contact an expert
before making decisions about tax matters.

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