Skip to content
Search Articles/

less than a minute read • Updated 40 minutes ago

Set up coupons for tax-inclusive pricing

How Foxy coupons behave with tax-inclusive pricing, and how to set a coupon's Tax rate so a fixed-amount discount stays correct.

When your store uses tax-inclusive pricing, fixed-amount coupons need a Tax rate so the discount comes out as expected. Percentage coupons work correctly either way. Read the Taxes documentation first for context on tax-inclusive pricing.

How the settings interact

Two coupon settings affect tax:

  • Apply taxes before this coupon (Options): tax is calculated before the coupon discount is applied. Use this when a discount is meant to be applied after tax. For example, if you give 100% off but still need to collect tax on the full sale amount.

  • Tax rate (Tax settings): a decimal from 0 to 1, used in tax-inclusive mode. It reduces the applied (but not displayed) discount by that inclusive rate. A €15 amount coupon becomes 15 / 1.1 = €13.64, which produces a €15 tax-inclusive discount in the order total.

Steps

  1. 1

    Go to the Foxy admin and open the coupon under Coupons.

  2. 2

    For an after-tax discount, turn on Apply taxes before this coupon under Options.

  3. 3

    For a fixed-amount coupon in tax-inclusive mode, set Tax rate under Tax settings to your customers' default rate as a decimal (for example, 0.1 for 10%).

Notes

  • Tax rate only matters for amount coupons in tax-inclusive mode. Percentage coupons already produce the correct order total.

  • Set Tax rate to the default rate for the customers who will use the coupon. This keeps the discount consistent and prevents tax-exempt customers from receiving a larger-than-intended discount.

  • Tax handling can be complex. Consult your tax professional for your specific situation.

Need Help?

Did this article answer your questions? Need help with anything? Please click below to contact us.