Custom Shipping Tax Calculator

Custom Shipping Tax Calculator

Compatible With: Community 2.0, 2.1, 2.2

Tech Specifications

Current Version:
Stable Build
10 July, 2018
Extensions, Accounting & Finance, Taxes
License Type:
GNU General Public License 3.0 (GPL-3.0)


Custom Shipping Tax Calculator offers multiple tax shipping options for more flexibility. This should benefit webshops in regions in which VAT regulations apply.

Other Extensions by LanthopusX


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Custom Shipping Tax Calculator is a big relief for  Magento stores that want or need to offer a dynamic shipping tax setup.  In The Netherlands for instance, sometimes customer have to pay shipping tax according to items in their cart (this can be due to tax regulations issued by the goverment), which is by default, not an option which is available in Magento 2. This situation might also apply to other countries.

Users of our extension will be able to apply two additional shipping tax methods based on the shopping cart. Those options are; “Highest applicable” and “Dynamic ” which are new next to the Default rate.


Main Features

  • Flexible shipping VAT options
    By default, Magento will only give you one option. And while that can work it is always good to have choices. Custom Shipping Tax Calculator gives you the option to do so!

  • Comply with local VAT laws
    Sadly Magento’s own options are a bit non-flexible it’s basically set and live with it. Even though if that can be conflicting with regulations when it comes to local VAT laws. For example in The Netherlands, you have products with different VAT levels.

Having a static VAT for shipping can be a downside for your customers, and through that for you as a business. With this extension, you can make sure your shipping Tax is more in line!


New VAT options

Custom Shipping Tax Calculator automatically calculates shipping cost including tax and adjusts the grand total accordingly. It allows a user to set custom shipping tax methods which are not available out of the box in Magento. Our extension adds provides you with the following options;

  • Static VAT
    This is the default method used by Magento itself. It makes your webshop use one single/uniform tax class which will be applied to the shipping cost for all orders in your Magento webshop/

  • Highest Applicable VAT  
    Using the Highest Applicable VAT method the shipping tax class depends on the items in your cart. From the products, in your cart, the product with the highest VAT amount will determine the used VAT for shipping.

  • Dynamic VAT
    Using the Dynamic VAT method the shipping tax actually gets calculated dynamically based on the combination of products.


Have you ever been in one of these situations? 

  • Do you deliver goods that are free of sales tax?
    Then you do not pay VAT on the shipping costs.

  • Is the VAT rate on your goods X%?
    Then you charge X% VAT on the shipping costs.

  • Is the VAT rate on your goods Y%?
    Then you charge Y% VAT on the shipping costs.

  • Are there goods on the invoice with different VAT rates?
    Then you get a weighted average. This means that you get a calculated average when it comes tot he VAT rate, based on the order value.


How VAT is calculated if set to dynamic;

VAT rate for the shipping costs = Amount X% VAT rate + Amount Y% VAT rate and it consists of : 
Amount X% VAT rate = ((Shipping * (total amount of products taxed with X% VAT / total order value)) * X%
Amount Y% VAT rate = ((Shipping * (total amount of products taxed with Y% VAT / total order value)) * Y%  


Frequently Asked Questions    

  • Why did LanthopusX create Custom Shipping Tax Calculator?
    Actually, this has multiple reasons. The main reason is to make Magento comply more with the local VAT laws that countries can have. For example in The Netherlands goods can have various VAT amounts which are determined by the law. Magento sadly does not offer an option to comply with that to any degree out of the box in regards to shipping.
    Besides that we also wanted to make the way you deal with VAT shipping amounts more flexible. That’s why besides the default option and the dynamic VAT option (as mentioned in the example above) we also offer a highest applicable VAT option if you want to base it on the most highest VAT amount referenced by the products in your shopping cart.

  • Why would you want to use Custom Shipping Tax Calculator?
    If you want a more flexible solution then the default static Magento VAT shipping option you can use the Custom Shipping Tax Calculator for this. Also if you are living in a country which has different VAT amounts set by law (like us) you can adapt your Magento webshop to comply more with it in regard to shipping. 

Release Notes

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  • Compatible with CE: 2.0 2.1 2.2
  • Stability: Stable Build
  • Description:

    This is the first Release with all features and no known issues.


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The best place to start if you need help with a specific extension is to contact the developer. All Magento developers have both a contact email and a support email listed.

Q & A

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