A tax category is associated with a tax type and corresponds to a product category where all the same tax calculation rules apply. Tax categories are easy to assign to products and enable Magelia WebStore to automatically calculate the taxes that apply to a certain product. Various tax categories can be assigned to a product in order to apply different taxes to the same product.

Example : Tax categories permit in Europe, for example, to determine products that are subject to the VAT standard rate or the VAT reduced rate, etc. You can also determine tax categories according to merchandise classifications, commodity codes, etc.

• DO define a code for the tax category.

• DO Title the tax category in different languages.

• If all the products that you sell are subject to the same tax rates, just create one tax type, one tax category and one tax rate.

• Why is using tax categories better than directly defining the tax rates? When creating products, you assign them to tax categories. So, if the taxes change, all you have to do to correct the calculation is modify the associated tax rate for the whole tax category.

• Different ways to organize tax categories : You can organize tax categories to your liking. For example, in Europe, you can define three tax categories to manage the VAT tax: normal rate, reduced rate and extra-low rate. You can also manage taxes more specifically by creating tax categories that correspond to the Commodity Codes in the U.S., for example.