Magento Commerce, 1.14.x

Magento 1.x Software Support Notice
For Magento Commerce 1, Magento is providing software support through June 2020. Depending on your Magento Commerce 1 version, software support may include both quality fixes and security patches. Please review our Magento Software Lifecycle Policy to see how your version of Magento Commerce 1 is supported.

Fixed Product Tax

Some tax jurisdictions have a fixed tax that must be added to certain types of products. Magento lets you set up a fixed product tax (FPT) to use in 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 the FPT tax is subject to an additional % tax calculation. Your tax jurisdiction might also have rules about the display of product prices, either with or without tax. Be sure that you understand the requirements, and set your FPT display options accordingly.

We recommend that you exercise caution when quoting FPT prices in email, because of possible differences in price display, depending on how the Display Prices in Sales Modules and Display Prices in Email options are configured. For example, if you show Order Review prices without FPT, customers who buy items with the associated FPT will see a total that includes the FPT tax amount, although it is not included in the itemized entry for the amount.

Important! Quoting FPT prices in email might cause abandoned carts if your customers see an order total that does not match what they expect based on an itemized list of products in the order.

  • FPT Price Settings

    FPT

    Display Setting and Associated Calculation

    Not Taxed

    Excluding FPT

    Treats FPT as a separate row in the cart and includes the value of FPT in the 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

    Treats FPT as a separate row in the cart and includes the value of FPT in the 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.