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Tax Settings

3 minutes

📍 Where can I find this module?
Settings > Tax Management > Tax Calculation

Introduction #

The Tax Calculation module allows you to configure the taxes applicable to products and services in Kafinea. It can be accessed via Settings > Tax Management > Tax Calculation.

The Control Panel has three tabs:

  • Taxes: taxes applicable to goods and services (VAT, environmental tax, etc.)
  • Fees and related taxes: taxes on ancillary charges (delivery, etc.)
  • Tax regions: geographic areas with different tax rates

1. Understanding the different types of taxes #

VAT in France #

:::info Note
The VAT rates listed below are provided for informational purposes only and reflect the rates in effect at the time this documentation was written. Since tax regulations are subject to change, it is the responsibility of each business to verify the applicable rates with official sources (e.g., service-public.fr) and to update its settings in Kafinea accordingly.
:::

In France, VAT is divided into four categories, with rates varying by geographic region:

Category Mainland France Corsica Overseas Departments (Guadeloupe, Martinique, Réunion) French Guiana / Mayotte
Standard rate 20 % 20 % 8,5 % 0 %
Interim rate 10 % 10 % 2,1 % 0 %
Reduced rate 5,5 % 5,5 % 2,1 % 0 %
Super-reduced rate 2,1 % 0,9 % 1,05 % 0 %

Other taxes #

VAT isn't the only tax that applies to goods and services. Depending on your business, other taxes may apply:

  • Tax on Precious Metals
  • Packaging fee
  • Eco-tax / eco-contribution
  • WEEE (Waste Electrical and Electronic Equipment)
  • Tax on cooking oils

Each tax must be entered as a separate entry in Kafinea.

2. Configure tax regions #

Important: Set up your tax regions before creating your Variable taxes.

Tax regions allow different rates to be set for the same tax depending on the geographic area.

Create a region #

  1. Go to Settings > Tax Management > Tax Calculation
  2. Click the " Tax Regions" tab
  3. Click " Add a new region"
  4. Enter the name of the region (e.g., "Mainland France")

Recommended regions in France #

  • Mainland France
  • Corsica
  • Overseas Departments (Guadeloupe, Martinique, Réunion)
  • French Guiana / Mayotte

Tip: You can group multiple territories into a single region if they have the same tax rates.

3. Create taxes #

Best Practices for Naming #

Name your taxes by category, not by rate.

✅ Best practice ❌ Bad practice
VAT – Standard rate TVA 20 %
VAT – Intermediate rate TVA 10 %
VAT – Reduced rate TVA 5,5 %
VAT – Super-reduced rate TVA 2,1 %

Important: Naming a tax "20% VAT" is misleading because the 20% rate applies only to mainland France. In Corsica and the French overseas departments, the standard rate is different.

Create a Variable-type tax #

  1. Go to the Taxes tab
  2. Click " Add a new tax"
  3. Enter the name (e.g., "VAT – Standard Rate")
  4. Select the " Variable" type
  5. Enter the default value (e.g., 20 for mainland France)
  6. Add regional segments by clicking on Add a tax bracket :
    • Select the relevant region(s)
    • Enter the applicable rate

Example: For the "VAT – Standard Rate" tax:

  • Default value: 20 (mainland France)
  • Corsica: 20
  • DOM: 8.5
  • French Guiana / Mayotte: 0

Fixed vs. Variable #

  • Fixed: a single rate that is the same regardless of the region. Suitable for taxes that do not vary by geographic location.
  • Variable: a default rate plus region-specific rates. Recommended for VAT and any tax whose rate varies by geographic area.

Calculation method #

  • It's simple: the tax is calculated based on the base amount
  • Compound: The tax is calculated based on the base amount plus other selected taxes
  • Deducted: The tax is included in the price and deducted from the total amount

4. Assign taxes to products and services #

Once taxes have been configured, each record or service record displays the available taxes in the Pricing Information block.

  1. Open record product or service record in edit mode
  2. In the "Taxes" section, check the tax(es) applicable to this item
  3. The displayed rate is the default rate; it will be automatically adjusted based on the tax region selected when creating a quote, invoice order

Tip: Generally, a standard product only needs one VAT category selected (e.g., "VAT – Standard Rate"). Certain specific products may require additional taxes.

5. Use in business documents #

When creating a quote, an invoice an order:

  • The tax region is selected on the document
  • The system automatically applies the rate corresponding to the region for each variable tax
  • If no region is specified, the default rate is used

FAQ #

Why not just create "20% VAT"?
Because the VAT rate depends on the geographic region. By creating "VAT – Standard Rate" with the Variable type, you allow the system to automatically apply the correct rate (20% in mainland France, 8.5% in the French overseas departments, etc.).

Can a product be subject to multiple taxes?
Yes. A product can be subject to both VAT and another tax (eco-tax, WEEE, etc.). Check all applicable taxes on the record .

What happens if I don't configure tax regions?
Taxes will be applied at their default rates (Fixed type or the default value for the Variable type). You will not be able to take advantage of automatic adjustment by geographic region.

Related references #

  • Products — Product Catalog Management