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Question About Setting Tax On Shipping For Taxable Items Only

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Question About Setting Tax On Shipping For Taxable Items Only

Hello,

 

I have a client on Magento 2.3.4

 

He wants to add taxable items but it seems, at least from the default settings and from testing, if we add a few test taxable items and add shipping, the *tax on shipping* is based on 100% of the shipping cost, instead of dynamically calculating it based only on the items that are taxable.

 

Does Magento 2 allow out of the box dynamic calculation of shipping tax instead of 100% taxed on the shipping cost? For instance, imagine you have 3 items in cart:

 

Item 1: $10 (taxable)

Item 2: $10 (taxable)

Item 3: $10 (not taxable)

 

Let's say shipping is $20 for these 3 items and adds sales tax of 8%. Magento will take the $20 and add 8% to that, instead of saying "Ok, I see only 2 items are taxable. So I'll take the % those 2 items represent of the total order (let's say 66%) and tax only 66% of the shipping total"

 

Is *that* possible? If so what are the exact settings to set for that? or do I need to override the logic and do this programmatically? Thanks.

2 REPLIES 2
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Re: Question About Setting Tax On Shipping For Taxable Items Only

Hello @joelmon 

The Magento by default has not this type of configuration. where you can take the shipping tax in some items of the cart. to achieve such functionality you must have to do customization. 

One another way to achive this without customization. 

Take shipping cost based on wait of the product. then set wait only on those products where you want to take the shipping tax. then ony those products shipping is calculated which product have wait. but if any customer only buy the non taxable goods then they must go for free shipping. 

I suggest you to go for the customization.

If my suction helps you then please give me "Kudos" and "Accept as Solution" for Token of Appreciation.  

Regards,
Deep

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Re: Question About Setting Tax On Shipping For Taxable Items Only

Thank you, Deep, for the suggestion and for confirming it cannot be done out of the box. I've tried multiple scenarios so it's good to know I wasn't overlooking anything. Will investigate 3rd party services or customizations.