TAX/VAT rates and rules

I’ve received a request to talk about TAX/VAT rules in more detail within Magento 2. However, my experience has only even required me to ever setup basic TAX rates/rules for products where the TAX is only adjusted based on shipping location (rather than product type).

If anyone would like to contribute some real-world examples that I can use, that would be awesome :+1:

Hi Craig,
We sell a variety of personalised products through various market places. I am just building a new Magento 2 website by following your “Build a website” article.

We sell clothing as one of our ranges and included in this is children’s and babies clothing. The VAT rate for these are zero rated so I would to know how to add this to my Magento website and allocate to the products that are zero rated.

I’m not sure wether you can set the VAT rate for individual products or not so would love to learn more.


Hi Andy,

I didn’t realise VAT wasn’t charged for children’s or babies clothing. I assume there’s a grey line as to what constitutes as children’s clothing?

But what you want to achieve is actually super simple. Normally, when you list a product, you’d select the Tax Class attribute to Taxable Goods. In your case, choose None for the children’s or babies clothing should do the trick. It’ll be a couple of weeks before I get to put the video together probably so figured I’d just mention it here for now.

In the video I’ll make sure I cover this topic an include shipping to none TAX regions like Isle of White as well.