Taxes are an integral part of any business and depending on your country, state or region of your business you will have different taxes. Also your different products may have different taxes. PrestaShop has all the required settings you need to set up necessary taxes to your products.
In PrestaShop there’s a difference between taxes and tax rules. Taxes are in fact the tax rates (in percents) that are applied for the different countries or states/regions within countries. These tax rates can then be added to tax rules. In a tax rule there can be many tax rates as well as you can also specify for which countries or states/regions these taxes will apply.
You cannot add tax directly to a product in PrestaShop, you need to add taxes of your choice and add it in a tax rule first, then you can assign that tax rule to a product. In this tutorial, we will learn how to manage tax rules in PrestaShop.
Add Tax Rules
To add a tax rule, login to the admin dashboard of your PrestaShop store and navigate to International > Taxes and browse the Tax Rules Tab. This page opened will show a table with some predefined tax rules as shown below
To add a new tax rule, simply click on the Add new tax rules group button on the top-right corner. This will open a form with just two settings to fill as below:
- Name – Enter the name for the tax rule.It can be any thing you want; It can include any information about the taxes you will add in this rules or any information that will describe that taxes like country name etc for example GST-India.
- Enable – You can enable or disable this tax rule to to assign it to products. You can also enable or disable a tax rule, once the rule is created. However, if you disable a tax rule that has been assigned to products, the tax rule option of those products will be automatically set to No tax.
After entering the values click on Save and Stay button. This will save the tax rule and on the same page some more options for the rule will be displayed below as shown:
Here you will need to choose the Country / State, Postal Code, Behavior and Tax etc for the tax rules. The options are as below:
- Country – Select the country from the drop-down to which you want the tax to apply. If the customer address belongs to that particular country this tax rule will be applied to the purchase.
- State – This option will only appear if the selected country is configured to contain states/regions. You can select the state to which you want to apply this tax. You can also select more than one state from the list by pressing Ctrl key from the keyboard and selecting the states from your mouse. If you want the tax to apply to all states within the country, select All from the list.
- Zip/postal code range – This option lets you specify one zip/postal code or a whole range of postal codes for which you want the tax to apply. If you want to include a range of zip codes separate them with a hyphen (e.g. 0000-5555). If the zip/postal code of the customer falls within the specified range, then the tax will be applied else it will not be applied.
- Behavior – The address of a customer may match with more than one tax in the tax rules assigned for the ordered products. For example, if you have included in a tax rule a general tax for a whole country, and you have also included taxes for states/regions in the same country. If there is more than one tax that can be applied, with this option you can specify the behavior of the particular tax. There are three choices:
- This tax only – Only this tax will be applied to the purchase.
- Combine – This will combine all the tax rates that match to that purchase. For example, if the purchase is of $100 and there are two taxes, one is at rate 20% and the other is at the rate of 5%. Then the total tax will be 25% (20 + 5). This will makes the tax amount $25 ($100 + 25%).
- One after another – If there’s more than one tax that matches, then one of the taxes is applied first, and the other tax is applied to the amount after adding base price and the previous tax. For example, if the purchase is of $100 and taxes of 20% and 5% apply to the purchase, then the total tax amount will be $26: 20% out of 100 = $20 tax; 5% out $120 ($100 + $20) = $6 tax; $20 + $6 = $26 total tax amount after the two tax rates are applied one after the other.
- Tax – Select the actual tax for the drop-down menu. You can add and manage taxes from International >Taxes sub-menu.We will learn how to add and manage taxes in next section.
- Description – this is an optional field in that you can use to add add any information about the tax.
After you have enter all the information, click on Save and Stay button. The tax will be added to the table on the same page. If you want to add more than one tax rule into same group, just click on button Add a new tax rule button on the top of page.
Managing Tax Rules
To edit an existing tax rules, go to International >Taxes sub menu and select Tax Rules tab in the PrestaShop back-office. You will be presented with a table consisting a list of existing tax rules. To edit a tax rule, click on its Edit button.
This will open a page with options associated with that tax rules and a list of all the tax rates added to that rule.
You can make the desired changes in the tax rule on this page like changing name and setting enable to disable. To change the tax rates you can click on Edit button of a particular tax rates. The options are same for the tax rates while adding a new tax rates.
To delete an existing tax rules, go to International >Taxes sub menu and select Tax Rules tab in the PrestaShop back-office. In the table with tax rules click on the arrow next to the Edit button for a tax rule and from the drop-down menu select delete.
If you delete a tax rule that has been assigned to products, the tax rule option of those products will be automatically set to No tax.