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Complete Procedure to Setup & Enable VAT in Your Magento Store

Setup & Enable VAT in Your Magento Store Magento content management system allows store managers to setup a VAT rate for each product sold to the retail customer. This tutorial will help you in setting up and enabling VAT in Magento run online stores. But before going through the tutorial you should be aware of the rules and regulations that apply to VAT in your region.

Setup Customer Tax Classes in Magento Store

  • Log in to your Magento store backend after entering the correct credentials
  • From the Admin Panel, select Sales > Tax > Customers Tax Classes
  • Create a Customer Tax Class and Name it using the Add New button

Setup Product Tax Classes in Magento Store

  • From the Admin Panel, select Sales > Tax > Product Tax Classes
  • Next, click the Add New button and add the following classes:
  1. VAT Standard
  2. VAT Reduced
  3. VAT Zero
  • For each class, click the Save Class button to save the changes made

Setup Tax Zones & Rates in Magento Stores

  • From the Admin Panel, select Sales > Tax > Manage Tax Rules
  • Add three new tax rules:

1. VAT Standard

  • Name: VAT Standard
  • Customer Tax Class: Retail Customer
  • Product Tax Class: VAT Standard
  • Tax Rate: VAT Standard Rate

2. VAT Reduced

  • Name: VAT Reduced
  • Customer Tax Class: Retail Customer
  • Product Tax Class: VAT Reduced
  • Tax Rate: VAT Reduced Rate

3. VAT Zero

  • Name: VAT Zero
  • Customer Tax Class: Retail Customer
  • Product Tax Class: VAT Zero
  • Tax Rate: VAT Zero Rate
  • Click the Save Rule button to save the changes made

Apply Tax Rates to Products in Magento Store

  • From the Admin Panel, select Catalog > Manage Products
  • From the catalog, select a product you wish to edit
  • In the Product Information tab, in the General section, find the Tax Class option
  • From the list, select the VAT class which is applicable to the product
  • On completion, click the Save button to save the changes made

This is the only recommended method to enable VAT in Magento stores. But if you are unable to setup VAT rates successfully, then either follow the above steps once again carefully or Request a Quote with us.

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