Tax Rules

Tax rules put all the taxation elements together: product tax classes, customer tax classes, and
tax zones and rates. Each tax rule consists of a customer tax class, a product tax class, and a
tax rate.
When numerous taxes must be defined, you can simplify the process by importing them from a
spreadsheet. Select Sales > Tax > Import/Export Tax Rates.

To define tax rules:

1. On the Admin menu, select Sales > Tax > Manage Tax Rules.
2. In the upper-right corner, click the Add New Tax Rule button. Then, do the following:

a. Enter a Name for the rule.
b. Select a Customer Tax Class. To select multiple options, hold the Ctrl key down and click
each item.
c. Select a Product Tax Class.
d. Select the Tax Rate.
This rule applies the tax rate to customers in the selected customer tax class and to
products in the selected product tax class.
e. In the Priority field, enter a number to indicate the priority of this tax, when more than
one tax applies. If two tax rules with the same priority apply, then the taxes are added
together. If two taxes with different priority settings apply, then the taxes are
3. In the Sort Order field, enter a number to indicate the order in which tax rules are displayed on
the Manage Tax Rules page.
4. If you want taxes to be based on the order subtotal, select the Calculate off Subtotal Only
5. When complete, click the Save Rule button.

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