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By: Cybrosys Technologies

How to Adapt Taxes to Customer Location with Odoo


Taxes are specific to location and country. Each country will have separate tax laws and rules. That means an enterprise resource planning software should be able to manage taxes for different countries in different ways to help the customers. As tax is part of every transaction, be it purchase, sale, or accounting, tax mapping is an important part of every business. 

Odoo, the best open-source software solution provides the clients with a comprehensive support system for tax mapping. Odoo assists the user to do tax mapping based on the location of the customer. In short, a user from India and a user from the USA will have to follow different tax rules and Odoo is capable of handling different tax regimes efficiently.

In this blog, we can check how Odoo enables tax mapping for a customer based on customer location.

Odoo enables tax mapping with the help of fiscal positions. What is the fiscal position, we can term fiscal position as one or more rules which help a system to map taxes, especially default taxes? That means the tax on a product can be assessed based on customer location.

To enable this we have to go to Accounting -> Configuration -> Accounting -> Fiscal position


Here, the user can easily create a new fiscal position or make use of the already created fiscal position. Let us see how to create a new fiscal position.

Click on the Create button to create a fiscal position


Then you get the above given fiscal position creation form. This form has to be filled based on the location of the customer. Then the user will have to enable the detect automatically option also. We have also enabled VAT required here. The country group has been selected for Europe and Fiscal position as European Companies.


Now we have to move to the Tax Mapping tab. Now we have to assign the localized tax or tax mapping to a customer.

Once the tax mapping is done here then the tax on the product for the selected fiscal position will change. In the below-given image, the tax on the product for sale and purchase is 15%. As the tax to apply is 0% the tax for a customer from the selected country will be selected as 0 percent by the system. The process will be automatic.


This can be done by going to Accounting -> Customers -> Customer

Here, the user can find many customers. What we have to do here is to select the customer from the list or create a new customer. I have selected Azure Interior as the customer. 

As I have selected an existing customer, customer details have to be edited.


For this, choose the Edit option


Click the Edit option. Here in the customer form, we can find many tabs. Contact and address, sales and purchase, accounting, internal notes, partner assignment and membership are the tabs here. We have to go to the Sales and Purchase Tab.

Here, you can make the necessary changes in the fiscal position.


Once this process is completed the newly created tax will be made applicable to the particular customer. All customers with the same fiscal position will benefit from the tax mapping.

If you need any assistance in odoo, we are online, please chat with us.

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