It looks like there is some confusion on how tax classes should work. Does this help :
Tax ConfigurationKonaKart includes a powerful tax calculation system containing the following entities:
- Zone: A physical area and is normally a state or region within a country.
- Tax Area: An area defined for tax purposes and can be mapped to a zone or a country.
- Tax Class: Defines a type of product for tax purposes because products within the same tax area may be taxed differently depending on their tax class. For example, children's clothes or basic necessities such as milk, may be taxed differently to luxury goods.
- Tax Rate: A percentage number used to actually calculate the tax on a product. It has to be associated with a tax area and a tax class.
To start, you should define all of the zones for the country that you are interested in. Our database comes pre-populated with zones for a few countries. Even if the tax rate doesn't change between zones, it is still a good idea to populate them since this helps customers when entering addresses because they can be displayed in a drop down list.
Next, you should define the tax areas which may map directly to the zones. For example, the state of Texas may map directly to a tax area. Once you've defined all of you tax areas, you should map them to the zones using the Admin App.
The following step is to define the tax classes which are needed before entering any products. Once these are defined, the final step is to insert all of the tax rates that could be applied and map them with a tax area and a tax class.