How to enable tax-free orders in Magento 2?
Sometimes, the EU-based shops want to offer tax-free shopping for customers with valid VAT numbers. There are some Magento 2 modules that enable this option with a separate config. Yet you should know that the feature is available for guest and registered customers without a single third-party module.
Let's assume that you already configured taxes for EU countries. If not, please create:
- At least one Tax Rate at the Stores - Tax Zones and Rates page.
- At least one Tax Rule at the Stores - Tax Rules page.
Configuring zero tax orders
First you have to create a Tax-free customer tax class. Please follow the steps:
- Open any of the existing Tax Rules at the Stores - Tax Rules page.
- Expand the Additional Settings fieldset and add the Tax-free tax class using the button below the Customer Tax Class field.
- Uncheck the newly created tax class in the Customer Tax Class field.
- Save the rule.
Then you will create Valid VAT and Invalid VAT customer groups. Follow the steps:
- Navigate to the Customers - Customer Groups page and press the Add New Customer Group button.
- Create Valid VAT group using Tax-free class.
Note: this step is optional. Create an Invalid VAT group. Use your regular Tax Class for this group.
Now we configure Automatic Assignment to Customer Group. Follow the steps:
- Navigate to Stores > Configuration > Customers > Customer Configuration > Create New Account Options.
- Set Yes in the Enable Automatic Assignment to Customer Group field.
- Choose the proper values in the Group for Valid VAT ID and Group for Invalid VAT ID dropdowns.
Note: you may select any other group except Valid VAT as a group for the customers with an invalid VAT number.
View the checkout page look.
There is a bug in Magento which doesn’t allow for using this feature. When a client enters a valid VAT and then clears the VAT field - tax will not appear again. To fix this bug, we offer to apply the patch.