Overview

Tax Unit Based Tax Computation is a powerful and flexible taxation module designed for businesses that require unit-based, volume-based, or ML-based tax calculation instead of standard percentage or per-unit taxes.

The module enhances Odoo’s native tax system by introducing a Tax Unit field at the product level. The Tax Unit represents measurable quantities such as milliliters (ML), liters, grams, weight, or any custom unit used for excise and regulatory tax computation.

Taxes are calculated using Python code–based formulas configured directly in Odoo’s tax settings. The product’s Tax Unit is dynamically referenced during tax computation, allowing precise and compliant tax calculations.

The module uses Odoo’s official tax computation engine and does not override any core accounting logic, ensuring full compatibility with Sales, Purchases, Invoicing, and Accounting.

Why This Module Is Required

This module is essential for industries where tax must be calculated based on product volume, measurable content, or regulated units rather than price or quantity.

It enables businesses to comply with excise, cess, and regulatory taxation requirements that cannot be handled by standard percentage-based tax logic.

Primary Use Cases

• Nicotine, Vape & E-Liquid Industry – ML-based excise tax computation
• Alcohol & Beverage Industry – Volume-based taxation (liters / ML)
• Pharmaceutical & Chemical Industry – Concentration & volume-based tax
• Fuel, Oil & Lubricants – Liter / gallon-based excise taxes
• Regulated Businesses – Government-mandated unit-based tax structures

How It Works

1. Add a Tax Unit value on the product configuration
2. Define tax rules using Python Code in Odoo tax settings
3. The formula dynamically references product.tax_unit
4. Tax is computed as: quantity × tax unit × formula logic

result = quantity * product.tax_unit * rate
            

Key Features

• Unit-based and volume-based tax computation
• Supports ML, liters, grams, weight, and custom units
• Python formula–based tax rules
• Excise and regulatory tax support
• Hides standard product tax fields
• Uses Odoo’s official tax engine
• No core overrides — ERP safe
• Compatible with Sales, Purchase, Invoice, and Accounting