In Adobe Commerce (Magento), tax calculation is based on the combination of three core elements: a customer tax class, a product tax class, and a tax rate. The merchant has configured each of these elements in isolation. However, for the system to apply a specific tax, a Tax Rule must be created. This rule explicitly links these three components together, telling Magento which tax rate to apply when a customer from a specific class purchases a product from a specific class. Without this connecting rule, the tax calculation engine has no instructions on how to apply the configured rates, resulting in no tax being added to orders.

A. integrate a GeoIP service so Magento can correctly identify the customer's region.

A GeoIP service is an enhancement for estimating location, but tax calculation fundamentally relies on the customer's shipping or billing address, which is required for checkout. The core logic is missing, not the location data.

B. Edit each individual product to make sure that it is assigned to the right taxable region.

Products are assigned to tax classes, not directly to taxable regions. Taxable regions (like state or country) are defined within the tax rate configuration, not at the product level.

D. Select the correct tax rates within the customer tax class configuration.

Tax rates are not assigned directly within a customer tax class. The association between a customer class, product class, and tax rate is made exclusively within a Tax Rule.

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1. Adobe Commerce User Guide

"Tax Rules": "A tax rule is a combination of a product tax class

customer tax class

and tax rate. Each customer is assigned to a a customer tax class

and each product is assigned to a product tax class. Magento analyzes the shopping cart of each customer and calculates the appropriate tax according to the customer and product classes and the store's tax rules."

Source: Adobe Commerce Documentation

Stores > Taxes > Tax Rules.

2. Adobe Commerce User Guide

"Tax Configuration Best Practices": "The basic components of tax configuration are Tax Rates

Tax Zones

and Tax Rules. For tax to be calculated correctly

you must configure all three components." This statement emphasizes that all three parts

including the rule

are mandatory for the system to function.

Source: Adobe Commerce Documentation

Stores > Taxes > Tax Configuration Best Practices.

3. Adobe Commerce Developer Documentation

"Tax": The developer documentation outlines the database schema

showing that the taxcalculationrule table links customertaxclassid

producttaxclassid

and a code that corresponds to the taxcalculationrate. This confirms at a technical level that the rule is the linking entity.

Source: Adobe Commerce Developer Documentation

Architecture > Core Architecture > Tax.