Configuring a tax on a per category basis works when you have a category or sub category of products that attracts a different VAT rate from your regular store rate, and we want this tax to only affect the specific category it is applied to.
For the purposes of demonstration we will implement a 40 percent tax on CMS movies. E-commerce and other DVDs, however, are still charged at the regular tax rate by this new tax introduced by the government of the day:
On the Taxes and Calculation rules page (list), click on the New button. The following table gives details of the values to configure. All the unmentioned fields can be left as their default:
Field
Value to enter/select
Calculation Rule name
40 percent VAT
Published
check
Description
Write something to remind you of the reason for this rule (for example, "Unfair tax on innocent CMS DVD purchasers.")
Type of Arithmetic Operation...