Fixed Product Tax
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) for your store’s tax calculations. For example, in some
countries FPT can be used to set up a Waste Electrical and Electronic Equipment Directive
(WEEE) tax, also known as “ecological tax” or “eco tax,” that is collected on certain types of
electronics to offset the cost of recycling. This tax 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 additional % 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.
We recommend that you 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 will
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.