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Tax Configuration

Set up tax rates applied to your invoices.

Tax configuration

My Company → Taxation: define custom taxes, tax-inclusive pricing, or an external tax processor.

Accessing Tax Settings​

Navigate to My Company → Taxation tab, or through the Settings page.

Tax Rate Configuration​

SettingDescription
Tax ratePercentage, 0 to 100, with up to 5 decimal places (20 for 20% VAT, 8.875 for a fractional sales-tax rate)
Inclusive/ExclusiveWhether your prices already include tax or tax is added on top
Applied toWhat the tax applies to: subscriptions, usage charges, or both
US-Based SaaS Businesses

For US-based companies, this can be configured as a sales tax based on your company's registration address. More complex tax structures — such as charging sales tax based on the customer's location (nexus rules) via external taxation plugins (Avalara AvaTax, SureTax, etc.) — are available on Enterprise plans. Contact sales to discuss your tax requirements.

Tax Inclusive vs. Exclusive​

  • Exclusive (most common): Your prices are net. Tax is added on top.
    • Price: $100, Tax: 20% → Customer pays $120
  • Inclusive: Your prices already include tax. Tax is calculated backward.
    • Price: $120 (incl.), Tax: 20% → Net: $100, Tax: $20

What Tax Applies To​

You can scope tax to specific charge types:

  • Subscriptions only: Tax on monthly/annual plan fees
  • Usage only: Tax on per-unit usage charges
  • Both: Tax on all charges (most common)

Advanced Tax Requirements​

For businesses with complex tax needs (e.g., different rates per jurisdiction, nexus-based calculations, multi-tax stacking, or external tax-engine integrations like Avalara), contact sales about an Enterprise plan.

Tax on Invoices​

When invoices are generated, the billing engine:

  1. Calculates the subtotal of all charges
  2. Applies the configured tax rate(s)
  3. Shows tax as separate line items on the invoice
  4. Includes the grand total (subtotal + tax)
caution

Tax configuration should be set up before you start billing customers. Changing tax settings mid-period may result in inconsistent invoice calculations.