by Firecheckout Support

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.
  • magento 2 tax rules

  • Uncheck the newly created tax class in the Customer Tax Class field.
  • magento 2 tax

  • 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.

magento 2 tax rules

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.

magento 2 VAT number validation

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.

magento 2 VAT number validation field

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.

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