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Set a tax rate for your location, and it’s applied automatically to every customer purchase, with the tax breakdown shown on invoices and receipts. You can also set different tax rates for different products.

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Set up taxes

Set a default tax rate that automatically applies to all purchases.
  1. Go to Location settings > Billing > Taxes tab.
  2. Toggle on the Taxes switch.
  1. Tax type — determines tax name on invoices and receipts.
  1. Tax rate — the percentage of tax that will apply to all prices and invoices, except for those with a custom tax rate.
  2. Tax option
    • Inclusive tax is a part of the price. If you choose the inclusive tax option, set prices for all resources and services with the tax included (gross).
    • Exclusive tax applies on top of the price. If you select the exclusive tax option, set prices for all resources and services excluding the tax (net).
  3. Display tax-exclusive prices — this setting is useful if your tax option is Inclusive, but your country’s regulations require invoice and receipt line items to show amounts excluding tax. This requirement applies in some EU countries.
    • Enable to display all line item amounts on invoices and receipts excluding tax.
    • Disable to display all line item amounts on invoices and receipts including tax.
If your tax option is Exclusive, line item amounts on the invoices and receipts are always shown excluding tax, regardless of this setting.
Example invoice with tax-inclusive amounts:
The same invoice with tax-exclusive amounts:
Your tax settings save automatically and apply to all future customer purchases, except for products and services for which you set their own custom tax rate.

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Custom tax rates for different products

Set a specific tax rate for an individual plan, subscription item, invoice item, shop product, or event if it needs to differ from the location’s default rate.
Set up taxes for the location before setting a custom tax rate.
Plans
  1. Create or edit a plan.
  2. Enable Custom tax rate and set the Tax rate field.
All new members who subscribe to the plan are charged the custom tax rate. To apply it to existing members, edit their subscriptions.
Subscription items
  1. Create or edit a member’s or company’s subscription.
  2. Select an item.
  3. Enable Custom tax rate and set the Tax rate field.
Set a custom rate on each item individually if you need a different rate across the whole subscription.
Invoice items
  1. Go to the Billing > Invoices page or the customer’s profile.
  2. Open an existing draft or upcoming invoice, or click Create invoice to start a new one.
  3. Click Create item, set the Tax rate field, and click Create.
Shop products
  1. Create a shop product and open a specific product option, or edit an existing one.
  2. Enable Custom tax rate and set the Tax rate field.
Events
  1. Create or edit an event.
  2. Enable Custom tax rate and set the Tax rate field.
To exempt a product or service from tax, set its custom tax rate to 0.
A custom tax rate only applies to what it’s set on. For example, a custom rate on a subscription only affects that subscription — the customer’s other purchases still use the location’s default rate, or their own custom rate if one is set.

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Edit taxes

  1. To change the location’s default tax type, rate, or option, go to Location settings > Billing > Taxes tab and update the fields. Changes save automatically.
  2. To change a custom tax rate on a specific plan, subscription item, invoice item, shop product, or event, update the Tax rate field on that item instead.

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Disable taxes

Turn off the default tax rate for all monetary prices in a location.
  1. Go to Location settings > Billing > Taxes tab.
  2. Toggle off the Taxes switch.
Changing the tax rate or tax option, or disabling Taxes, only affects new purchases and newly issued invoices or receipts. Changing the tax type updates all invoices and receipts, past and future.
Switching the tax option between Inclusive and Exclusive doesn’t convert your existing prices — it only changes how tax is calculated on top of them. If your prices were gross (tax-included), update them to net before switching to Exclusive. If they were net (tax-excluded), update them to gross before switching to Inclusive.

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How taxes work

  • Customers always see the final, tax-included price at checkout.
  • Tax applies to prices automatically, and a full tax breakdown appears on every invoice and receipt.

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How discounts affect taxes

Discounts are subtracted from an item’s original price — the price you enter — before tax is calculated. After the discount is applied, the taxable amount and tax amount are recalculated from the new, discounted price. Because the discount reduces the taxable amount, invoices and receipts show the new taxable amount in brackets next to the tax line.
For inclusive tax, the discount is subtracted from the original tax-inclusive amount. The taxable and tax amounts are then recalculated from the new, discounted amount.Invoice before a discount:
Invoice after a discount:
If your tax option is Inclusive with Display tax-exclusive prices enabled, the Unit amount and Amount are also adjusted on the invoice and receipt breakdown to reflect the tax recalculation after the discount.
For exclusive tax, the discount is subtracted from the original tax-exclusive amount. The taxable and tax amounts are then calculated from the new, discounted amount and added on top.Invoice before a discount:
Invoice after a discount:

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Notes

  • A discount changes an item’s price rather than adding a separate line item, so it has no tax breakdown of its own.
  • Tax is calculated on the discounted amount, so the discount amount itself stays the same regardless of your tax settings.