Odoo 10 Implementation Cookbook

Apply tax based on customer location

The tax computation is quite complicated in some countries; tax percentages applied will be based on customer location. For example, when you sell a product to the customer within the state, the tax applicable is 15%. But for the same product when it sold to the customer outside the state the tax applicable is 5%.

It is difficult to check the customer location and change the tax on an invoice for every customer, as Odoo applies the default tax on the product. Odoo has a feature called fiscal position. By using this feature, we can change not only Tax but also Accounts, depending on the customer location.

To set up Fiscal Position, go to Configuration | Fiscal Position under the Accounting application. ...