Add a tax rule.

PrestaShop allows you to define custom tax rules.

To access it: International > Taxes.

What is a tax rule?

A tax rule is a tax specific to a single country, a group of countries, or a certain type of products. At the time of its creation in the back office, each product sold on PrestaShop is assigned a tax rule.

Tax rules can then be combined with one another.

Certain countries or provinces require merchants to apply multiple taxes. This is the case, for example, in Quebec, 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?

It is not possible to apply a tax directly to a product; you can only apply tax rules to it.

Therefore, it is necessary to first create all the taxes required for your product. Subsequently, you must 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, navigate to the "Tax Rules" tab which lists all previously created tax rules. Click on the "Add Tax Rule Group" button located at the top right of the page to open the tax rule creation form.

1. Name the rule. Use a descriptive name such as the tax country code, its name, or even its rate; this will help you easily locate it!
2. Activate it or leave it deactivated.
3. Click on "Save and stay".

Saving the new tax rule will result in the display of a new block just below. This is where you will be able to define the allocations of this tax rule.

In this new form, please fill in all the fields:

• Country: the target country of the rule you are creating.
• Postal code range: this field allows you to define the postal codes to which the tax should be applied: enter either a complete postal code or a range of postal codes using a hyphen. For example, use "75001-75012" for a range that includes all postal codes between these.
• Behavior: some customers may have an address that matches several of your tax rules. In this case, you may choose from the following options:
  • This tax only: only this tax will be applied, and none of the other taxes applicable to the client.
  • Combine the taxes: combine the taxes with each other.
  • One after the other: to apply the 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 in PrestaShop. If not, select "No tax", disable the tax rule, then go create a tax on the "Taxes" page before returning to complete this tax rule.
• Description: you may add a brief explanation detailing why this rule exists for this country.

Click on "Save" to finalize the creation of your new tax rule.