Adobe Commerce is an eCommerce platform designed to help companies create, manage, and grow their businesses online. Setting up tax rules in Adobe Commerce is an important part of the setup process to help you stay compliant with applicable tax laws. Tax rules can be created for any type of business and adapted to the company’s needs.

The first step in setting up tax rules in Adobe Commerce is to determine what types of sales will be taxed. Different rules may apply depending on the type of company. For example, a digital service provider may not be required to collect sales tax, unlike a retail store. Once you’ve determined your sales type, you can start setting up your tax rules.

You will then need to determine the specific tax rates applicable in your state or country. You need to familiarize yourself with the applicable tax rules and decide how to apply them to your business. Adobe Commerce simplifies this process by providing access to tax databases and allowing you to set custom tax rates.

You also need to consider how you will handle shipping and handling fees. In some cases, you may need to charge separate taxes for shipping and handling. Adobe Commerce allows you to set different rates for these two fees to avoid overcharging your customers with taxes.

Finally, if your business operates in multiple states or countries, you’ll need to set up separate tax rules for each location. Adobe Commerce makes this easier by allowing you to target tax rates for specific locations. You can also specify for each location how taxes should be collected and applied at checkout.

Adobe Commerce offers a streamlined way to set up tax rules for your eCommerce store. By taking the time to familiarize yourself with current tax regulations and adapting the Adobe Commerce platform to your needs, you can ensure that you are compliant with the latest tax regulations.