A Guideline On Fixed Product Tax In Magento 2

In some tax jurisdictions, a fixed tax that must be added to certain types of products. Store administrators can set up a fix product tax (FPT) for tax calculations of their store. For example, in some countries, Waste Electrical and Electronic Equipment Directive (WEEE) tax or “ecological tax” or “eco-tax,” which is collected from types of electronics to counterbalance the cost of reusing can be set up using FPT. This tax is a fixed sum, rather than a percentage of the product price.

FPT apply at the item level, based on the product. In some jurisdictions, this tax is subject to an additional % tax calculation. Your tax jurisdiction might also have rules that decide how the product price displays to customers, either with or without tax. You have to understand the rules and set your FPT display options accordingly.

Exercise caution is recommended in quoting FPT prices in the 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 will see a total that includes the FPT tax amount, but without an itemized breakdown. The difference in price might cause customers to leave their carts because the total differs from the amount expected.

FPT Display Prices

FPT	DISPLAY SETTING AND CALCULATION
Not Taxed	Excluding FPT FPT displays as an isolated row in the cart, and the value is used in appropriate tax calculations. Including FPT FPT is included in the base price of an item but is not included in tax-rule-based calculations. Excluding FPT, FPT Description, Final Price Prices displays without FPT amount or description. FPT is not included in tax-rule-based calculations.
Taxed	Excluding FPT FPT displays as an isolated row in the cart, and the value is used in proper tax calculations. Including FPT FPT is added in the price of an item, and change to tax calculations is not required. Excluding FPT, FPT Description, Final Price Prices display without the FPT amount or description. However, FPT is included in tax-rule-based calculations.

In the next article, we will describe tutorial on configuring FPT in Magento 2. Keep tracking Magestandard to read the following Magento 2 article.