You mark a product as taxable by checking a single checkbox on the product record. Once a product is taxable, the tax engine calculates and applies tax automatically when the product is added to an order during Order Entry (and on the draft Opportunity).
1
Open a non-tax product record
Open a non-tax Product (Product2) record.
2
Check the Is Taxable checkbox
Check the Is Taxable (Is_Taxable__c) checkbox.
A Product record with the Is Taxable checkbox selected
3
Save the product
Click Save.
Marking a product as taxable only tells the engine that tax should apply. The amount of tax charged is determined by the tax product the engine selects for that order. See Tax Products.
