Magento Community Edition, 1.9.x

Fixed Product Tax

Some tax jurisdictions have a fixed tax that must be added to certain types of products. You can set up a fixed product tax (FPT) for your store's tax calculations. For example, in some countries FPT can be used to set up a Waste Electrical and Electronic Equipment Directive (WEEE) tax, also known as "ecological tax" or "eco tax," that is collected on certain types of electronics to offset the cost of recycling. This tax is a fixed amount, rather than a percentage of the product price.

Fixed product taxes apply at the item level, based on the product. In some jurisdictions this tax is subject to an additional % tax calculation. Your tax jurisdiction might also have rules about how the product price appears to customers, either with or without tax. Be sure that you understand the rules, and set your FPT display options accordingly.

We recommend that you exercise caution when quoting FPT prices in email, because the difference in price can affect customer confidence in their orders. For example, if you display Order Review prices without showing FPT, customers who buy items with associated FPT will see a total that includes the FPT tax amount, but without an itemized breakdown. The difference in price might lead some customers to abandon their carts because the total differs from the amount expected.

  • FPT Display Prices

    FPT

    Display Setting and Calculation

    Not Taxed

    Excluding FPT

    FPT appears as a separate row in the cart, and the value is used in appropriate tax calculations.

    Including FPT

    FPT is added to the base price of an item but is not included in tax- rule-based calculations.

    Excluding FPT, FPT Description, Final Price

    Item prices are shown without FPT, FPT amount, and with FPT included. FPT is not included in tax-rule-based calculations.

    Taxed

    Excluding FPT

    FPT appears as a separate row in the cart, and the value is used in appropriate tax calculations.

    Including FPT

    FPT is included in the price of an item, and no change to tax calculations is required.

    Excluding FPT, FPT Description, Final Price

    Item prices are shown without FPT, FPT amount, and with FPT included. FPT is included in tax-rule-based calculations.