Need help for this special Ad Valorem Tax on alcoholic beverages

Hello community, I need help understanding how to include a special tax, for the moment I can’t find a way of doing it with the system.

Brief summary: In our country El Salvador, alcoholic beverages are subject to 2 specific taxes:

1)Alcoholic specific content tax (Alicuota) :** It’s a specific amount (not percentage) charged per each 1% of alcohol content per liter of alcoholic beverage. Each type of liquor has a particular tax amount per % of alcohol per litre of product.

Example of Alcoholic content tax table:


One bottle of 750 ml vodka 40% alc/vol is subject to:

[Alcohol %] x [Alicuota] x [volumen in liters]
40 x 0.09 x 0.75 = $2.70

2) Ad Valorem tax : The ad-valorem tax rate will be eight percent (8%).**

This rate will be applied to:

  1. The suggested selling price to the public, declared by the producer or importer to the Tax administration.

  2. The price differential, when alcoholic beverages are sold to the consumer at prices higher than those suggested to the public.

  3. If item is sold below the suggested price to public the differential (8%) will be awarded as credit for the next month declaration.

From ERPNEXT point of view each item (Vodka, 40%, 750 ml) has specific details to correctly calculate the final tax and selling price.

ITEM NAME LUNA Basalto Vodka 750ml 40%
Product type Vodka
% of alcohol 40%
Volume 750 ml
Alicuota 0.16
Suggested retail price (without any taxes) 12.50
Selling price (without any taxes) (could be lower, equal or higher than suggested retail price)

Complete calculation of alcoholic beverage tax:

  • Case 1 (Selling price = Suggested retail price):

1 Like

Hi @Ipasoft , how are you?
Did you solve your idea?

Hello S_L, I had to hire a developer in order to accomplish the task.
He’s working at this moment on the project.