Fixed product tax (FPT)

Some tax jurisdictions have a fixed tax that must be added to certain types of products. You can set up a fixed product tax (FPT) as needed for your store’s tax calculations. In some countries, FPT can be used to set up a Waste Electrical and Electronic Equipment (WEEE) tax. This tax is also known as ecological tax or eco tax, and is collected on certain types of electronics to offset the cost of recycling. It 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, this tax is subject to an extra % tax calculation. Your tax jurisdiction might also have rules about how the product price appears to customers, either with or without tax. Be sure that you understand the rules and set your FPT display options accordingly.

Exercise caution when quoting FPT prices in email, because the difference in price can affect customer confidence in their orders. For example, if you display Order Review prices without showing FPT, customers who buy items with associated FPT see a total that includes the FPT tax amount, but without an itemized breakdown. The difference in price might lead some customers to abandon their carts because the total differs from the amount expected.

FPT display prices

FPT
Display setting and calculation
Not Taxed
Excluding FPT
FPT appears as a separate row in the cart, and the value is used in 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
Prices appear without FPT amount or description. FPT is not included in tax-rule-based calculations.
Taxed
Excluding FPT
FPT appears as a separate row in the cart, and the value is used in 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
Prices appear without the FPT amount or description. However, FPT is included in tax-rule-based calculations.

Configure FPT

The Fixed Product Tax (FPT) input type creates a section of fields for managing tax for each region.

The following instructions show how to set up a fixed product tax for your store, using “eco tax” as an example. After setting the scope for the tax and the countries and states where the tax applies, and depending on the options you choose, the input fields can change according to the local requirements. To learn more, see Create product attributes.

Step 1: Enable fixed product tax

  1. On the Admin sidebar, go to Stores > Settings > Configuration.

  2. In the left panel, expand Sales and choose Tax.

  3. Expand Expansion selector the Fixed Product Taxes section.

  4. Set Enable FPT to Yes.

  5. To determine how fixed product taxes are used in store prices, choose the FPT setting for each of the following price display locations:

    • Display Prices in Product Lists
    • Display Prices on Product View Page
    • Display Prices in Sales Modules
    • Display Prices in Emails

    Options (same for each):

    • Including FPT Only
    • Including FPT and FPT description
    • Excluding FPT. Including FPT description and final price
    • Excluding FPT
  6. Set Apply Tax to FPT as needed.

  7. Set Include FPT in Subtotal as needed.

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    Fixed Product Taxes

    For a detailed description of each of these configuration settings, see Fixed Product Taxes in the Configuration Reference Guide.

  8. When complete, click Save Config.

Step 2: Create an FPT attribute

  1. On the Admin sidebar, go to Stores > Attributes > Product.

  2. In the upper-right corner, click Add New Attribute and do the following:

    • For Default Label, enter a label that identifies the attribute.

    • Set Catalog Input for Store Owner to Fixed Product Tax.

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    Attribute Properties
  3. Expand Expansion selector the Advanced Attribute Properties section and set the property options:

    • Attribute Code - Enter a unique identifier in lowercase, without spaces or special characters. The maximum length is 30 characters. You can leave the field blank to the text from the Default Label field.

    • Add to Column Options - If you want the FPT field to appear in the Products list, set to Yes.

    • Use in Filter Options - If you want to be able to filter products in the grid based on the value of the FPT field, set to Yes.

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    Advanced Attribute Properties
  4. (Optional) In the left panel, choose Manage Labels and enter a label to use instead of the default label for each store view.

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    Manage Labels
  5. When complete, click Save Attribute.

  6. When prompted, refresh the cache.

Step 3: Add the FPT attribute to an attribute set

  1. On the Admin sidebar, go to Stores > Attributes > Attribute Set.

  2. In the list, click the attribute set to open the record in edit mode.

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    Attribute sets list
  3. Drag the FPT attribute from the list of Unassigned Attributes on the right to the Groups list in the center column.

    Each group folder corresponds to a section of product information. You can place the attribute wherever you want it to appear when the product is open in edit mode.

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    Edit Attribute Set
  4. When complete, click Save.

  5. Repeat this step for each attribute set that should include fixed product tax.

Step 4: Apply FPT to specific products

  1. On the Admin sidebar, go to Catalog > Products.

  2. Open the product that needs a fixed product tax in edit mode.

  3. Find the FPT section of fields that you added to the attribute set and click Add Tax.

  4. Specify the applicable tax for the product:

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    Fixed Product Tax for Canada
    • If your Commerce instance has multiple websites, choose the appropriate Website and base currency. In this example, the field is set by default to All Websites [USD].

    • Set Country/State to the region where the fixed product tax applies.

    • For Tax, enter the fixed product tax as a decimal amount.

  5. To add more fixed product taxes, click Add Tax and repeat the process.

  6. When complete, click Save.

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