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A few sample taxes are already in place, which depend on the country you chose for your shop during the installation of PrestaShop. The tax rules are set for each tax: the rules actually serve as a kind of country filter, limiting the use of that tax to a specific set of countries.
You should edit a couple of the presented taxes in order to get a better grasp of how tax rules can be set.
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Adding A New Tax Rule
You can add as many tax rules as needed to your PrestaShop installation. Not only that, but you should make sure that all of the needed tax rules are registered in your shop.
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Note that the default rate applied to your products will be based on your store's default country.
Taxes
The "Taxes" sub-tab, located under the "Payment" tab, enables you to manage the applicable taxes. Click on this tab to see the list of taxes. Three taxes are set up by default.
Taxes options
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Taxes are a complex subject, which should be fully understood as it can have a significant impact on your product prices or your shipping fees. While this user-guide is not meant to teach all the ins-and-outs of taxes, we will try our best give you pointers. Taxes are "compulsory contribution to state revenue, levied by the government on workers' income and business profits or added to the cost of some goods, services, and transactions". In short, every product you sell is subject to sales taxes, which depend on your state's tax laws. In effect, you contribute to your state or government functioning (public goods and services) with a percentage of all your sales, as defined by local tax rates. There are hosts of tax rates in the World, and they vary considerably from one country to another, and even within a single country if it has federal states (USA, Germany, Spain, Russia...). You should therefore make sure to strictly conform to your country's tax laws, and even those of your state or town if they apply to you. Check with your local tax representative as soon as possible in order to get all the official details. |
By default in PrestaShop, a tax applies to all countries/states/zones.
Tax Options
At the bottom of the page is the "Tax options" section. These options apply to the whole shop, and all of the orders.
- Enable tax. Whether or not taxes are included in each purchase.
- Whether or not taxes are displayed in the cart.
- Which customer address should the tax be based on.
- Whether or not an ecotax applies (read this Wikipedia page to learn more about the ecotax).
If an ecotax does apply, a new field will appear in the product creation page:
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- Display tax in cart. You might prefer the customer not to be aware of the taxes that are applied to the order. In that case, disable this option.
- Base on. The customer can choose to have the product not delivered at the same address as the one the order invoice should be sent to. This can have a great impact on taxes. By default, PrestaShop bases its tax rates on the delivery address, but you can choose to have them based on the billing address.
- Use ecotax. The ecotax refers to "taxes intended to promote ecologically sustainable activities via economic incentives". It is a tax that shop owners pay in order to "feel the social burden of their actions". Learn more about ecotax on this Wikipedia page: http://en.wikipedia.org/wiki/Ecotax
Once you have enable the use of ecotax, all your products will feature an "Eco-tax (tax incl.)" field in their "Prices" tab. You should fill that field with the exact value of the tax, which depends on your country's tax laws (it is probably based on the product's price).
Note that if you have set ecotaxes for your products already, and that you choose to disable ecotax, then all your products will lose their ecotax settings.
If you decide to enable the ecotax after having added products, you will have to edit them all in order to set the tax properly for each product.
The ecotax will also appear to the customer, on the product's page:
Adding
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A New Tax
When you want to add another tax; simply click on the "Add New" button seen in the previous screenshot, and this form will appear:
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