The ecotax is a contribution in France to finance the collect, the recycling and the depollution of a piece of furniture or used electrical and electronic equipment. The ecotax is not a tax per se, but a fixed mandatory contribution (the actual term is “eco-participation”) that must be paid by the customer. Then it’s donated by the seller to a collection agency.
The amount of the ecotax is fixed and does not depend on the product price. The ecotax is subject to VAT.
The ecotax can be toggled in the “Tax Options” section from the International > Taxes page. Once enabled, a new drop-down is displayed containing all the tax rules, allowing the merchant to choose the VAT rate that will be applied on the ecotax. But this drop-down should rather be displayed on the product page (instead of International > Taxes page) as the ecotax VAT rate should be same as the VAT product rate (see improvement #22827). If the ecotax is enabled, then a field “Ecotax (tax incl.)” is displayed in the Back Office’s “add / edit product” page, so that the merchant can input the amount of included ecotax (tax included) in the product’s price. However, ecotax only applies for physical products, so it should never be displayed for virtual products.
If the ecotax is filled in the back-office for a product, then it’s displayed in the front-office product page under the product price: “Including €X.XX for ecotax”.
The ecotax is already included in the product’s price, tax excluded. The ecotax field in the product page exists exclusively to provide information about the amount of ecotax that is already included in the product’s price.
The ecotax is provided for information purposes and does not affect the final price because it is already included in it.
The ecotax is subject to VAT at the same rate applicable to the product.
The ecotax amount has to be paid in full by the customer and can never be reduced. The ecotax (and its VAT amount if applicable) must also be displayed and paid in the case of a gift product.
Product price tax excl with ecotax: 10€
VAT 20% = 2€
Product price tax incl with ecotax: 12€
As you can see, the ecotax is already included in the price, so it has no impact in the calculation.
Ecotax tax excl: 2€
Ecotax VAT 20% = 0,40€
Ecotax tax incl: 2,40€
VAT paid by the merchant: 1,6 + 0,40 = 2,00€
Ecotax paid by the merchant: 2€
Earnings for the merchant: 12 - (2,00 + 2) = 8,00€
Considering the following informations:
A - Produt price tax incl with ecotax: 12€
B - Ecotax tax incl: 2,40€
C - Rebate: 90%
The final price will be: C * (A - B) + B = 0,1 * (12 - 2,40) + 2,40 = 3,36€