Setting Rates for Tax Calculations for Commerce 2.1 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

1. Navigate to the Control Panel → Commerce → Channels.

2. Click on the channel you are configuring a tax rate for. If you used an accelerator like Minium, a channel is created by default.

3. Scroll down to Tax Calculations.

4. Click Edit next to By Address.

5. Slide the Percentage and Active toggles to YES.

6. Click Save.

Next, set the tax rate by category and by address:

1. Click Tax Rate Settings.

2. Select whether the taxed address is the Billing Address or the Shipping Address from the Apply Tax to dropdown menu.

3. Click Add () to add a Tax Category.

4. Select the Tax Category (for example, Holiday Special).

5. Enter the following:

   • Rate: Your tax rate
   • Country: Applicable country
   • Region: Leave blank to apply to the whole country
   • Zip: Leave blank to apply to the whole country

6. Click Submit.

Address specific tax rates are now configured.