I have to configure default tax rate which is 25% for the default country and 0 tax for other country. How do I do that?
Right now I set product tax class to all the products and so even if I'm using other country I still got tax which is 25% where it should be 0 tax.
Can anyone give me some idea on how to achieve it?
Quite similar issue/question: Different State Different Tax
Best Answer
Based on my trial and error on this issue I got it working and here is what I did.
I created two tax rate for the two countries.
Country 1 -> 25%
Country 2 -> 0
In my first tax rule I changed it and I selected the rates "Country 1" and "Country 2" and save it.
In Tax settings (System->Configuration->SALES->Tax) I changed "Tax Calculation Based On" from "Shipping Origin" to "Shipping Address".
So when a user will checkout it will check the shipping address and will calculate the tax based on the tax rule/rate.
Hope this help.