Shipping Tax Class
A separate product class can be set up for shipping. Then, you must identify it in the
configuration as the tax class used for shipping.
Step 1: Set Up a Product Tax Class for Shipping
1. On the Admin menu, select Sales > Tax > Product Tax Class.
2. In the upper-right corner, click the Add New button.
3. Enter a Class Name for the new tax class. For example, “Shipping.”
4. When complete, click the Save Class button.
Step 2: Configure the Shipping Tax Class
1. On the Admin menu, select System > Configuration.
2. In the panel on the left, under Sales, select Tax.
3. Click to expand the Tax Classes section.
4. Set Tax Class for Shipping to the class you created for shipping.
5. When complete, click the Save Config button.