Setting Rates for Tax Calculations for Commerce 2.0 and Earlier Versions

Define tax rates in Liferay Commerce using configurable tax engines and assign them to tax categories. You can then apply tax rates to channel products and shipping costs by assigning the tax category to them.

• Understanding Tax Engines
• Configuring Tax Calculations
• Setting Tax Rates

Understanding Tax Engines

Commerce tax engines define how tax rates are calculated when a transaction is made. Liferay provides two out-of-the-box engines: Fixed Tax Rate and By Address. You can also design and implement custom engines.

Note

Tax categories can contain multiple tax rates created using either the same or different tax engine.

Fixed Tax Rate

The Fixed Tax Rate engine applies the same rate to all products and shipping costs assigned to the category, regardless of the buyer’s location.

By Address

The By Address engine applies specific rates based on the buyer’s billing or shipping address. If a Tax Category has multiple By Address rates, only those that match the buyer’s location are applied.

Configuring Tax Calculations

To set a tax rate by address,

1. Go to Site Administration → Commerce → Settings.

2. Click the Taxes tab and then the Tax Calculations sub-tab.

3. Click By Address.

4. Switch the Percentage toggle to YES if you want the tax to be defined as a percentage of the purchase price. Leave the toggle disabled to define the tax as a fixed amount.

5. Switch the Active toggle to YES.

6. Click Save.

Next, set the Tax Rate by Category and by Address:

1. Click the Tax Rate Settings sub-tab and then on the Add Tax Rate Setting button.

2. Select the Tax Category from the Tax Category field.

3. Enter the tax rate in the Rate field.

4. Select the country, region, enter the Zip code.

5. Click Save.

Address specific tax rates are now configured.