Add a tax rule
Updated on Wednesday, August 23, 2023
PrestaShop allows you to define customized tax rules. Find out how to add a new tax rule!
To access: International > Taxes
What is a tax rule?
A tax rule is a tax specific to a single country or a group of countries, or to a certain type of product. When created in the back-office, each product sold on PrestaShop is assigned a tax rule.
The tax rules can then be combined.
Some countries or provinces require merchants to apply several taxes. This is the case in Quebec, for example, which imposes the federal GST (goods and services tax) as well as the provincial QST (Quebec sales tax) on most products sold.
Why add a tax rule?
You can't apply a tax directly to a product; you can only apply tax rules.
First, you need to create all the taxes required for your product. You must then create a tax rule for these taxes. This rule will specify the countries to which the tax applies, and finally apply the tax rule to the product.
How do I create a new tax rule?
From the International > Taxes page, go to the "Tax rules" tab, which lists all previously created tax rules. Click on the "Add a tax rule group" button at the top right of the page to open the tax rule creation form.
- Name the rule. Use a meaningful name, such as the tax's country code, name or rate, to help you find it easily!
- Enable it or leave it disabled.
- Click on "Save and stay".
Saving the new tax rule will display a new block just below it. This is where you can define the allocations of this tax rule.
In this new form, fill in all the fields:
- Country: the target country of the rule you are creating.
- Zip code range: this field lets you define the zip codes to which tax should be applied: enter either a complete zip code, or a range of zip codes using a hyphen. For example, use "75001-75012" for a range including all zip codes between them.
Behavior: some customers may have addresses that match several of your tax rules. In this case, you can choose between the following options:
- This tax only: only this tax will be applied, and none of the other taxes corresponding to the customer.
- Combine taxes: combine taxes.
- One after the other: to apply taxes one after the other. For example, €100 + 10% = €110+ 5% = €115.50.
- Tax: the tax to be used for this tax rule. This tax must already exist at PrestaShop. If this is not the case, choose "No tax", deactivate the tax rule, then create a tax in the "Taxes" page before returning to terminate this tax rule.
- Description: you can add a short explanation of why this rule exists for this country.
Click on "Save" to finalize the creation of your new tax rule.