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How to include ecotax or environmental tax into your Magento webshop

18 April 2012

In Belgium certain webshops have to take into account ecological taxation (bebat, recupel, auvibel) on their products. Moreover they want to make a distinction for those ecotaxes between different countries. How to configure this in Magento is explained in this blog post. This blog is valid for Magento Community 1.4.1.1+

Attribute ecotax or fixed product tax in Magento

Firstly you need to create a new attribute (go to Catalog > Attributes > Manage Attributes). In the attribute properties, choose ‘Fixed Product Taxes’ as value for ‘Catalog Input Type for Store Owner’. This will give you the possibility to add ecotaxes. If you want to manage two kinds of ecological taxations, you can create two attributes and give them their own label.

Secondly, you assign the new ecotax attribute to the appropriate attribute set of the product.

Thirdly, in the backend of the product you can configure a different value for another country by clicking on ‘Add Tax’:

Ecotax bebat configured on product detail Magento

 Finally, In System > Configuration > Sales > Tax > Fixed Product Taxes you can change the configuration of the environmental taxes.

If you want to calculate VAT on your Fixed Product Taxes (FPT), turn the value of ‘Apply Tax To FPT’ into ‘Yes’. Magento considers the inputted tax in the attribute FPT always as excluding tax.

Configuration Magento for applying VAT to Fixed Product Taxes

Magento will calculate VAT on your product ecotaxes. Note that, depending on the Magento version you have, the calculation is being done wrong on the product detail page and product listing overview (there is no VAT calculation on the ecotax eventhough you indicated Magento has to calculate VAT on the FPT). However, the calculation in the shopping cart and checkout is done correctly.

An important remark: In Magento 1.6.1 (and lower) there is still the following core bug: when applying a shopping cart rule in the shopping cart, f.e. €10 discount for the whole cart, Magento will recalculate the unit price of the products containing environmental taxes. Therefore we do not recommend using the Fixed Product Taxes in a production installation, before solving this issue. This issue has also been confirmed by Magento when it was reported by PHPro: http://www.magentocommerce.com/bug-tracking/issue?issue=11683

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