How to Configure Taxes in PrestaShop

Taxes are an important part of running an online store. PrestaShop allows you to configure tax rules, tax rates, and tax-related settings so that the correct tax is applied to products and orders.

For Indian stores, for example, you may need to configure GST rates such as 5%, 12%, 18%, or 28%, depending on the product and applicable tax rules.

1. Open Tax Settings

Log in to your PrestaShop Back Office.

Depending on your PrestaShop version, go to:

International → Taxes

Here you can manage your tax rates.

You may also see:

International → Tax Rules

Tax rates define the percentage, while tax rules determine when and where that rate should be applied.

2. Enable Taxes

First, make sure taxes are enabled.

Go to:

Shop Parameters → General

Look for the tax-related option and make sure taxes are enabled for your store.

Save the settings.

3. Add a Tax Rate

Go to:

International → Taxes

Click:

Add new tax

Enter the required information.

For example, for an 18% GST rate:

Click Save.

You can create separate rates for different GST percentages.

For example:

• GST 5%
• GST 12%
• GST 18%
• GST 28%

Use the rates applicable to your products and tax obligations.

4. Create a Tax Rule

A tax rate by itself doesn’t tell PrestaShop which customers or locations should receive that tax.

For this, use Tax Rules.

Go to:

International → Tax Rules

Click:

Add new tax rule

Give it a name, such as:

India GST 18%

Save the tax rule.

5. Configure the Tax Rule

Open the tax rule you just created.

You can configure the applicable:

• Country
• State/region
• Tax rate
• Behavior when multiple taxes apply

For an Indian store, you would configure the appropriate Indian location and GST rate according to how your business is required to charge GST.

For example:

Tax Rule:
India GST 18%

Country:
India

Tax:
GST 18%

Rate:
18%

Save the rule.

6. Assign the Tax Rule to a Product

Creating the tax rule isn’t enough. You also need to assign it to products.

Go to:

Catalog → Products

Open a product.

Find the Pricing section.

Look for:

Tax rule

Select the appropriate tax rule.

For example:

Product price: ₹1,000
Tax rule: India GST 18%

Save the product.

7. Understand Tax-Included vs Tax-Excluded Prices

One important setting is whether your product prices are entered including or excluding tax.

For example, suppose the product price is ₹1,000 and GST is 18%.

Price excluding GST

Product price       ₹1,000
GST 18%               ₹180
---------------------------
Customer pays       ₹1,180

Price including GST

If ₹1,000 is the final customer price:

Customer price      ₹1,000
GST portion         ₹152.54
Price before GST    ₹847.46

The calculation is:

₹1,000 ÷ 1.18 = ₹847.46

GST:

₹1,000 − ₹847.46 = ₹152.54

Therefore, decide whether your store displays tax-inclusive or tax-exclusive prices before configuring your catalog.

8. Configure Customer Tax Display

PrestaShop can display prices according to your store’s tax settings.

Check:

Shop Parameters → General

and the relevant Tax/Group settings in your PrestaShop version.

You should test:

• Product page
• Category page
• Cart
• Checkout
• Order confirmation
• Invoice

This ensures that the tax displayed to customers is consistent throughout the shopping process.

9. Test Your Tax Configuration

After configuring taxes, place a test order.

For example:

Product: ₹1,000
GST: 18%

Subtotal: ₹1,000
GST:       ₹180
----------------
Total:    ₹1,180

Check the generated invoice as well.

Make sure the tax amount is correctly shown on:

• Cart
• Checkout
• Order
• Invoice
• Customer account
• Back-office order details

10. Common Tax Configuration Problems

Tax is not appearing

Check that:

1. Taxes are enabled.
2. The product has a tax rule assigned.
3. The tax rule contains the correct country.
4. The tax rate is enabled.
5. The customer’s address is correctly configured.

Wrong tax is being charged

Check the product’s assigned Tax Rule and the customer’s delivery/billing address.

Tax is calculated twice

Check whether you have accidentally configured overlapping tax rules or added a separate tax calculation through another module.

Product shows the wrong final price

Check whether your catalog prices are configured as tax included or tax excluded.

PrestaShop Tax Structure

The basic relationship is:

Tax Rate
   ↓
Tax Rule
   ↓
Product
   ↓
Customer Location
   ↓
Order
   ↓
Tax Amount
   ↓
Invoice

Conclusion

Configuring taxes correctly in PrestaShop requires more than simply entering a percentage. You need to create the appropriate tax rates, create tax rules, assign those rules to products, configure how prices are displayed, and test the complete checkout and invoice process.

For an Indian PrestaShop store, make sure your configuration matches your GST registration, product classification, customer location, and applicable GST rules.