As the EU has recently introduced new tax rules to facilitate cross borders trades and combat tax frauds, Koongo set up an Edit Store section Order Taxes by Countries to help merchants with the tax calculation across the countries.
The section contains 3 different fields:
1) Calculated by: As a default option the order taxes are calculated based on products or store settings. However, the merchants can choose to calculate the taxes according to the country in the billing address or the country in the shipping address by choosing one of them from the menu.
2) Default Order Tax for each Product Tax Class: If the order tax is calculated by shipping or billing address, the merchants can choose, and add in this field, a tax rate that is valid for all the countries.
3) Country Taxes for each Product Tax Class: If order tax is calculated by shipping or billing address. The merchant can specify a tax rate for each country adding the country code and its tax as shown in the below image.
When shipping (or billing) country matches one of the countries added, that tax rate will be used.
If a country is not on the list the default rate will be used. If also the default tax is empty then the products or store tax will be used.
Here you can find the tax priorities, from the highest to the lowest so you can choose how to apply them from:
Channel: Tax is already defined in channel data (e.g. Amazon).
Koongo: If the merchant applies choose this set up from Edit Store.
API: Available for Magento2 only.
Product: Each product should have a tax rate defined in its attributes.
Default Store: If the product does not contain a tax rate this option will be used.
Example from picture:
Shipping country is DE. Tax rate = 19%
Shipping country is NL. Tax rate = 15%
Shipping country is SE. Tax rate = 21% (SE is not defined, default tax is applied)
When the default tax is empty and shipping country is not defined, the tax rate = product tax if the tax attribute contains some value, otherwise, not tax will be applied.
* The ISO Alpha-2 Country Codes need to be used.