Watch this video or read the tutorial below to understand Tax Rate, Payment and Shipping Methods in Magento 2.

Taxes Management

Magento 2 allow you to create and set different Tax Rates for certain locations and/or product types. You need to know about how to add a Tax Rate and a Tax Rule to well-manage Magento 2 taxes system.

Add a Tax rate

Tax rates generally apply to transactions that take place within a specific geographical area. The Tax Zones and Rates tool enables you to specify the tax rate for each geographical area from which you collect and remit taxes. Because each tax zone and rate has a unique identifier, you can have multiple tax rates for a given geographic area (such as places that do not tax food or medicine, but do tax other items). Follow these 3 steps below to add a tax rate.

Step 1On the Admin sidebar, tap “Store” then choose “Tax Zones and Rates”.

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Step 2In “Tax Zones and Rates” interface, click on “Add New Tax Rate” button.

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Step 3Configure the new tax rate information then press the “Save Rate” button.

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_ Tax Identifier: The name of the tax used for internal identification.

_ Zip/Post is Range: If selected you will be able to set up a Range of Post codes in the two fields below this one.

_ State: The State on which you wish to impose the Tax Rate (if your country does not have States, this option will be in gray).

_ Country: The Country on which you wish to impose the Tax Rate.

_ Rate Percent: The Tax Rate percentage the customer will need to pay.

Add a Tax Rule

Tax rules incorporate a combination of product class, customer class and tax rate. Each customer is assigned to a customer class, and each product is assigned a product class. Magento 2 analyzes the shopping cart of each customer and calculates the appropriate tax according to the customer and product classes, and the region (based on the customer’s shipping address, billing address or shipping origin. Follow these 3 steps below to implement a Tax Rule.

Step 1On the Admin sidebar, tap “Store” then choose “Tax Rules”.

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Step 2In “Tax Rules” interface, click on “Add New Tax Rule” button.

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Step 3Configure the new tax rate information.

In the Tax Rule Information part of the configuration, you will need to put a Name for the Tax Rule and select the Tax Rate for it.

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Expand the Additional Settings and you will see a few more options to configure:

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_ Customer Tax Class: Customer Tax Classes are used in certain cases when the purchase is not retail (wholesale for example).

_ Product Tax Class: Different types of products have different Tax Classes (food and electronics for example). To better manage your products, you can create a new Tax Class here that corresponds to the product’s type.

_ Priority: The priority of this class when calculating from multiple tax rules (if two classes have the same priority they will be added during tax calculation).

_ Calculate off Subtotal Only: If you want taxes to be based on the order subtotal, mark the checkbox.

_ Sort Order: Modifying this will change the display order of the tax if more than one tax can be selected (lower is higher with 0 being displayed on top).

When complete, tap “Save Rule” button.

Payment methods

Magento Community Edition 2.1 supports a variety of payment methods, services, and gateways that you can offer for your customers’ convenience. There are 3 main payment methods: Offline Payments; Online Payments; Payment Card Industry (PCI) Compliance.

Offline Payment Method

Magento 2 allows you to accept payments offline by check or money order. The Check/Money Order payment method is enabled for your story by default. You can accept checks and money orders from only some specific countries, and fine-tune the configuration with minimum and maximum order total limits.

  • To configure offline payment method by check or money order

Step 1On the Admin sidebar, tap “Stores”. Then under Settings, choose “Configuration”. In the panel on the left under Sales, choose “Payment Methods”.

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Step 2Expand the Check/Money Order section. Then, do the following:

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_ Enabled: To accept payment by check or money order, set “Yes”.

_ Title: Enter to identify the Check/Money Order payment method during checkout.

_ New Order Status: Set “Pending” until receipt of payment is confirmed.

_ Payment from Applicable Countries: Set “All Allowed Countries” – customers from all countries specified in your store configuration can use this payment method. Set “Specific Countries” to select each country in the list where customers can make purchases from your store.

_ Make Check Payable To: Enter the name of the party to whom the check must be payable.

_ Send Check To: Enter the street address or PO Box where the checks are mailed.

_ Minimum and Maximum Order Total: The order amounts required to qualify for this payment method. An order qualifies if the total falls between, or exactly matches, the minimum or maximum total values.

_ Sort Order: Enter a number to determine the position of Check/Money Order in the list of payment methods that is shown during checkout (0 = first, 1 = second, 2 = third, and so on).

Step 3When complete, tap “Save Config” button.

Online Payment Method

Magento 2 allows you to accept payment that is transferred from a customer’s bank account and deposited into your merchant bank account.

  • To configure online payment method by bank transfer payments:

Step 1On the Admin sidebar, tap “Stores”. Then under Settings, choose “Configuration”. In the panel on the left under Sales, choose “Payment Methods”.

Step 2Expand the Bank Transfer Payment section. Then, do the following:

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_ Enabled: Set “Yes” to active Bank Transfers.

_ Title: Enter to to identify the Bank Transfer Payment method during checkout.

_ New Order Status: Set “Pending” until receipt of payment is authorized.

_ Payment from Applicable Countries: Set “All Allowed Countries” – customers from all countries specified in your store configuration can use this payment method.

Set “Specific Countries”  – Select each country in the list where customers can make purchases from your store.

_ Instructions: Enter the instructions your customers must follow to set up a bank transfer. Depending on the country where your bank is located and the requirements of the bank, you might need to include the following information: Bank account name, Bank account number, Bank routing code, Bank name, Bank address.

_ Minimum and Maximum Order Total: Set the amounts required to qualify to use this payment method. An order qualifies if the total falls between, or exactly matches the minimum or maximum total values.

_ Sort Order: Enter a number to determine the position of Bank Transfer in the list of payment methods during checkout (0 = first, 1 = second, 2 = third, and so on).

Step 3When complete, tap “Save Config” button.

PCI Compliance Payment Method

The Payment Card Industry (PCI) has established a set of requirements for businesses that accept payment by credit card over the Internet. For example, we will show you how to use the PayPal Express Checkout method:

Step 1On the Admin sidebar, tap “Stores”. Then under Settings, choose “Configuration”. In the panel on the left under Sales, choose “Payment Methods”.

Step 2Find the PayPal Express Checkout section and press “Configure” button. Then do the following:

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1Open Express Checkout options and click on the “Get Credentials from PayPal” button.

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This will open a new window of your browser to PayPal’s login page. Once logged in, Magento 2 will automatically copy the required information from your Paypal account to API configuration process.

2From the Basic Settings you can configure:

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_ Title: The title of the payment method.

_ Sort Order: Modifying this will change the display order of the payment method if more than one are available (lower is higher with 0 being displayed on top).

_ Payment Action: You can choose between Authorization and Sale. If you choose Authorization, you will have to authorize the payments before they can be processed. If you choose the Sale option, the customer will be charged immediately after they pay.

_ Display on Product Details Page: Set “Yes” to allow the payment method to be visible on the details page of every product (recommended).

3From the Advanced Settings you can configure:

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_ Display on Shopping Cart: Select “Yes” to display the method in the shopping cart (recommended).

_ Payment Applicable From: If you want to allow only some Countries to use PayPal Express choose them here.

_ Debug Mode: Set “Yes” to write communications with the payment system into the log file.

_ Enable SSL verification: Set “Yes” to enable host authenticity verification.

_ Transfer Cart Line Items: Enabling this will show all of the purchased item in the PayPal Transaction details during the payment process.

_ Transfer Shipping Options: Transfers the Shipping Options from your Magento 2 Store to the PayPal window during the payment process.

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_ Shortcut Buttons Flavor: You can choose either dynamic or static shortcut buttons.

_ Enable PayPal Guest Checkout: Set “Yes” to allow customers without PayPal accounts to make a purchases with this method.

_ Requires Customer’s Billing Address: Set “Yes” and the customer will have to fill this billing address (not recommended as it adds additional step to checkout process).

_ Billing Agreement Signup: If enabled, once a customer makes a purchase, he can choose whether or not his next purchases to ask for his billing details or directly use the one he has used before (we recommend using the Ask customer instead of Auto, if you wish to have billing agreement as a configurable option).

_ Skip Order Review Step: Set “Yes” to allow the customer to complete the transaction from the PayPal site without returning to your Magento store for Order Review.

Step 3You will also be able to set the front-end looks by adding a logo and choosing the style and colors for the PayPal Merchant Pages. When complete, click “Save Config” button.

Shipping methods

By default, Magento 2 supported 4 shipping methods which are: Free Shipping, Flat Rate, Table Rates, Dimensional Weight (Carriers).

Free Shipping

With no doubt, Free shipping is one of the most effective promotion methods in every E-commerce business, you can easily set up this by using Magento 2 free shipping rules, which is automatically set free shipping for a product if it meets the custom condition that you choose before. For example, you want to set a free shipping over $100, all customers who have orders more than $100 will get free shipping coupon immediately.

  • To Setup Free Shipping method:

Step 1Go to Store > Configuration > Sale > Shipping Methods.

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Step 2At Free Shipping menu, you fill in the information that Magento 2 required includes:

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1, Set “Yes” to turn on Free shipping in Enable box.

2, Fill in Title box and Method name.

3, Enter the Minimum Order Amount to qualify for free shipping.

4, In the Displayed Error Message box, type the message to appear if free shipping becomes unavailable.

5, Choose a suitable value in Ship to Applicable Countries box: All Allowed Countries or Specific Countries.

6, In Show Method if Not Applicable you can choose 2 options: Yes or No.

7, Enter a Sort Order number to determine the position of free shipping in the list of shipping methods during checkout. You can choose 1, 2, 3…

Step 3After finish all of above configuration, you can click “Save Config” button

  • To Enable Free Shipping in the Carrier Configuration:

Step 1From the Shipping Methods configuration, click to expand the UPS section.

Step 2Expand the UPS section. Then do the following:

1, Set Free Method to “Ground”.

2, To require a minimum order for free shipping, set Free Shipping with Minimum Order Amount to “Enable”.

3, Enter the required amount in the Minimum Order Amount for Free Shipping field.

Step 3When complete, tap “Save Config” button.

Flat Rate Shipping

In Magento 2 flat rate shipping is a fixed option for customers, in this way, the charge can be predefined for each product or order. There are many store-owners use this shipping method because of the simple and useful benefit that it brings.

  • To Setup Flat Rate Shipping method:

Step 1Go to Store > Configuration > Sale > Shipping method, expand “Flat Rate” tab.

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Step 2You need to fill in needed information in all blank boxes. Follow the instruction below:

1, Set Enable to “Yes”.

2, Fill in Title for your Flat rate method and Method Name.

3, Choose which Type of Flat rate shipping that you prefer: Per order/Per item.

4, Enter the Price that you want to charge for flat rate shipping.

5, Calculate Handling Fee: You can calculate shipping fee with fixed amount or percent amount.

6, Displayed Error Message: Customize your message to customers when something goes wrong.

7, Ship to Applicable Countries: You can apply Magento 2 flat rate shipping for a specific country by using this option.

8, Enter a Sort Order number to determine the position of the Flat Rate in the list of shipping methods during checkout.

Step 3After finish, hit “Save config” button.

Table Rate Shipping

With Table rate shipping method in Magento 2, customers can have the smartest choice for their shipping option, based on data from many fields like Weight, Destination, Price… When customers choose an option, your store will automatically estimate the shipping fee for their order.

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There are 4 steps that you need to finish to set-up Magento 2 table rate shipping method.

Step 1Default Settings.

Firstly, we need to complete default setting for Table Rate, you can go to Table rate menu by following this path: Store >> Configuration >> Sale >> Shipping Methods, then expand the Table rate configuration then follow the below instruction:

1, Enable: Turn it to Yes.

2, Title: Fill in the title that you want.

3, Method Name: This config will define how it call in checkout page.

4, Condition: In this box, you need to choose the formula that your store will use to calculate the shipping fee: Weight vs Destination; Price vs Destination; Number of item vs Destination.

5, Include Virtual Products in Price Calculation you should turn to Yes if your store has virtual product.

6, Calculate Handling Fee: You can set to fixed or percent.

7, Displayed Error Message: Customize your message to customers if there is any problem.

8, Ship to Applicable Countries: You can set table rate shipping method in Magento 2 to multiple countries by using this option, just choose which countries you want.

9, Sort Order: Position of this option in the checkout page. You can set 0,1,2,3.

When you finish everything, hit Save config button to apply your change with Magento 2 table rate shipping method.

Step 2Build Table Rate Data.

Choose the Store view to where you want to apply these changes:

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In the upper-left corner, set Store View to “Main Website” or to any other website where the configuration applies. When prompted to confirm, tap OK. You can see Import and Export were placed next to Use default buttons. We have to change the Condition here so we need to clear Use Default Checkbox, choose another option.

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Click Export CSV and download this file to your computer. Why do we need to download this file? We will edit the data inside it with our data. After finishing editing data, save changes.

Step 3Import the Table Rate Data.

In the previous step, you have to export and edit the data in Table Rate, now you need to Import it back to the server. Return to the Table Rates section of your store configuration.

1, In the upper-left corner, set Store View to the website where this method will be used

2, Next to the Import field, tap Choose File. Select your completed “tablerates.csvfile”, and import the rates.

When complete, click Save Config.

Step 4Configure the Rates.

To make sure that the table rate data is correct, go through the payment process with several different addresses to make sure the shipping and handling rates are calculated correctly.

Dimensional Weight (Carriers)

With Magento 2 dimensional weight, customers have to pay for shipping based on their product’s space. It means that carriers will base on package volume of products – the amount of space that product takes in the stock of carrier. Now dimensional weight is quite popular because of there are many providers offer this such as: DHL, FedEx, UPS, USPS. In later tutorial, we will talk about this.


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