How do I create a non-taxable virtual product (eBooks) with a taxable "hard-copy" option?

[georgeslat7770]

Greetings! I need to know how to create a single product that is "virtual" (eBooks, online access to materials) as a standard so no taxes are charged (unless in a state that taxes digital products) but also has an option to purchase a hard-copy of books that makes the entire transaction taxable. Can this be done?

[Robert Rand]

I'd start by setting up the correct sales taxes.

Then, you can create your 2 different products. 

This would include a Simple Product for the hardcover book, as well as a Virtual Product for the eBook. The visibility for each can be set so that these individual items are not visible individually.

As you create each product, you can choose the appropriate tax class. For the virtual item, it sounds like that would be "None", and for the simple product, it would be "Taxable Goods". This, of course, is dependent on your particular tax rules.

Then, you can create a Grouped product to display both items on the same page.

You can learn more about setting up a virtual product (including selecting Tax Classes) at https://docs.magento.com/user-guide/catalog/product-create-virtual.html

You can learn more about creating a grouped product at: https://docs.magento.com/user-guide/catalog/product-create-grouped.html

The sales taxes will remain tied to the products. In essence, if you're buying a bottle of liquor at one sales tax rate, and a carton of milk at another sales tax rate, these remain independent of each other. The tax rates on the milk and the liquor don't change just because you're buying two different items with two different tax rates. This is how most tax jurisdictions operate.