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Taxation policy and tax breakup

This article applies to:AvaTax

The Connector for Brazil for Magento 2 B2B Commerce implements Gross and Net taxation policy. You can configure the taxation policy as a one-time step when setting up the connector. Once you’ve configured the taxation policy, you can’t change it again. The taxation policy is implemented as follows:

  • Gross: The product price listed in the storefront is INCLUSIVE of the included taxes. The Subtotal in the shopping cart for the order is not updated as the included taxes are already part of the catalog price.
  • Net: The product price in the storefront is EXCLUSIVE of the included taxes. The Subtotal for the order is updated in the shopping cart to reflect the included taxes.

Apart from the included taxes, the tax calculation also includes added and subtracted taxes. If any taxes are added or subtracted, depending on the applicable tax rules, then they are added or subtracted irrespective of the included taxes. These taxes show up under Tax in the shopping cart. The tax breakup in the shopping cart shows all the included, added, or subtracted taxes.