Tax

Stores > Settings > ConfigurationSales > Tax

Adobe Commerce and Magento Open Source releases 2.4.0 through 2.4.3 included the Vertex vendor-developed extension used to integrate with the Vertex Cloud. Starting with the 2.4.4 release, this extension is no longer bundled with the core release and must be installed and updated from the Commerce Marketplace. The Marketplace also provides access to current documentation provided by the extension developer.

If you have the bundled extension enabled and configured, you must update your composer.json file as part of the 2.4.4 upgrade process and to manage extension updates going forward. See Upgrade modules in the Upgrade Guide for more information.

Tax Classes

Tax Classes

Field Scope Description
Tax Class for Shipping Website Identifies the tax class that is used for shipping. Options include all available product tax classes: None / Taxable Goods / Shipping / Tax Exempt
Tax Class for Gift Options Website Identifies the default tax class that is used for gift options.
Default Tax Class for Product Global Identifies the default tax class that is used for products.
Default Tax Class for Customer Global Identifies the default tax class that is used for customers.

Calculation Settings

Calculation Settings

Field Scope Description
Tax Calculation Method Based On Website Determines the method that is used to calculate the tax for an order. Options:
Unit Price - Tax calculations are based on the unit price of each product.
Row Total - Tax calculations are based on the line item total.
Total - Tax calculations are based on the order total.

Note: If a tax calculation extension is installed from the Marketplace, such as Vertex Cloud, the extension service is listed as an option.
Tax Calculation Based On Website Determines if the tax calculation is based on the shipping address, billing address, or the shipping origin. Options: Shipping Address / Billing Address / Shipping Origin
Catalog Prices Website Determines if catalog prices include or exclude tax. Options: Excluding Tax / Including Tax
Shipping Prices Website Determines in shipping prices include or exclude tax. Options: Excluding Tax / Including Tax
Apply Customer Tax Website Determines if tax is applied before, or after a discount. Options: Before Discount / After Discount
Apply Discount on Prices Website Determines if discount prices include or exclude tax. Options: Excluding Tax / Including Tax
Apply Tax On Website Determines if the tax applies to the original price, or to a custom price, if available. Options: Custom price if available / Original price only
Enable Cross Border Trade Website When enabled, applies consistent pricing across borders of regions with different tax rates. Options: Yes / No

Note: Using cross-border trade adjusts the profit margin by tax rate.

Default Tax Destination Calculation

Default Tax Destination Calculation

Field Scope Description
Default Country Store View Determines the country upon which tax calculations are based.
Default State Store View Determines the state upon which tax calculations are based. An asterisk (*) can function as a wildcard to indicate all states within the selected country.
Default Post Code Store View Identifies the postal code or ZIP code upon which tax calculations are based. An asterisk (*) can function as a wildcard to indicate all postal codes within the selected state.

Price Display Settings

Price Display Settings

Field Scope Description
Display Product Prices in Catalog Store View Determines if product prices published in the catalog include or exclude tax, or show two versions of the price; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax

Note: If you set the Display Product Prices field to “Including Tax”, the tax appears only if there is a tax rule that matches the tax origin, or if there is a customer address that matches the tax rule. Events that can trigger a match include customer account creation, login, or the use of the Tax and Shipping estimation tool in the shopping cart.
Display Shipping Prices Store View Determines if shipping prices include or exclude tax, or show two versions of the shipping price; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax

Shopping Cart Display Settings

Shopping Cart Display Settings

Field Scope Description
Display Prices Store View Determines if shopping cart prices include or exclude tax, or show two versions of the price; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Display Subtotal Store View Determines if the shopping cart subtotal includes or excludes tax, or shows two versions of the subtotal; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Display Shipping Amount Store View Determines if the shopping cart shipping amount includes or excludes tax, or shows two versions of the shipping amount; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Additionally Show Order Total Without Tax Store View Determines if an additional line with the grand total amount without tax is displayed in the shopping cart. Options: Yes / No
Display Full Tax Summary Store View Determines if the shopping cart includes a full tax summary. Options: Yes / No
Display Zero Tax Subtotal Store View Determines if the shopping cart includes a tax subtotal when the tax is zero. Options: Yes / No

Orders, Invoices, Credit Memos Display Settings

Orders, Invoices, Credit Memos Display Settings

Field Scope Description
Display Prices Store View Determines if the prices on sales documents include or exclude tax, or if each document shows two versions of the price; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Display Subtotal Store View Determines if the subtotal on sales documents includes or excludes tax, or if each document shows two versions of the subtotal; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Display Shipping Amount Store View Determines if the shipping amount on sales documents includes or excludes tax, or if each document shows two versions of the subtotal; one with, and the other without tax. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Additionally Show Order Total Without Tax Store View Determines if an additional line with the grand total amount without tax is displayed on sales documents. Options include: Yes / No
Display Full Tax Summary Store View Determines if the full tax summary appears on sales documents. Options: Yes / No
Display Zero Tax Subtotal Store View Determines of the subtotal section on sales documents appears when no tax is charged. Options: Yes / No
Display Gift Wrapping Prices Store View Determines if gift wrapping prices are included in the subtotal. Options: Excluding Tax / Including Tax / Including and Excluding Tax
Display Printed Card Prices Store View Determines if printed card prices are included in the subtotal. Options: Excluding Tax / Including Tax / Including and Excluding Tax

Fixed Product Taxes

Fixed Product Tax

Field Scope Description
Enable FPT Website Determines if FPT is available. Options: Yes / No
Display Prices in Product Lists Website Controls the display of FPT in product lists. Options:
Including FPT Only - Displayed prices include fixed product taxes. The FPT amount is not displayed separately.
Including FPT and FPT description - Displayed prices include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT. Including FPT description and final price - Displayed prices do not include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT - Displayed prices do not include fixed product taxes. The FPT amount is not displayed separately.
Display Price On Product view Page Website Controls the display of FPT on the product page. Options:
Including FPT Only - Displayed prices include fixed product taxes. The FPT amount is not displayed separately.
Including FPT and FPT description - Displayed prices include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT. Including FPT description and final price - Displayed prices do not include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT - Displayed prices do not include fixed product taxes. The FPT amount is not displayed separately.
Display Prices in Sales Modules Website Controls the display of FPT in the shopping cart and during checkout. Options:
Including FPT Only - Displayed prices include fixed product taxes. The FPT amount is not displayed separately.
Including FPT and FPT description - Displayed prices include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT. Including FPT description and final price - Displayed prices do not include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT - Displayed prices do not include fixed product taxes. The FPT amount is not displayed separately.
Display Prices in Emails Website Controls the display of FPT in email. Options:
Including FPT Only - Displayed prices include fixed product taxes. The FPT amount is not displayed separately.
Including FPT and FPT description - Displayed prices include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT. Including FPT description and final price - Displayed prices do not include fixed product taxes. The FPT amount is displayed separately.
Excluding FPT - Displayed prices do not include fixed product taxes. The FPT amount is not displayed separately.
Apply Discounts to FPT Website Determines if discounts can be applied to the FPT amount. Options: Yes / No
FPT Tax Configuration Website Determines how FPT tax is calculated. Options:
Not Taxed - Select this option if your taxing jurisdiction does not tax FPT. (For example, California.)
Taxed - Select this option if your taxing jurisdiction does tax FPT. (For example, Canada.)
Loaded and Displayed with Tax - Click this option if FPT is added to the order total before applying tax. (For example, EU countries.)
Include FPT in Subtotal Website Determines if FPT is included in the shopping cart subtotal. Options:
Yes - Includes FPT in the shopping cart subtotal.
No - FPT is not included in the subtotal, and is placed after the subtotal in the shopping cart.