How To Customize The Tax Settings in Your Payments Section

Managing taxes on invoices, order forms, and products is now more structured and efficient with enhanced tax display and automated tax calculation features. These tools provide a clear tax breakdown, customizable product-level tax settings, and automatic tax calculations based on customer location for US-based sellers. Businesses can apply taxes to products, configure tax settings, and view tax details in invoices and order summaries with greater accuracy and ease.

Follow these simple steps to get started:

Step 1: Accessing the Invoices

1- Navigate to the Payments Tab:

• Go to the Payments section and click on Invoices.
• You can create a new invoice or edit an existing one.

2- View the Tax Column:

• In the invoice editor, you will see a tax column that displays the cumulative total of taxes for each item.

Additionally, you can also create taxes by navigating to the settings tab in payments.

Step 2: Detailed Breakdown of Taxes

1- Order Summary:

• In the Order Summary section of the invoice, you will find a detailed breakdown of taxes.
• This breakdown shows how the tax calculations were made to arrive at the total tax value.

2- Tooltips for Tax Details:

• Hover over the tax values in the Order Summary to see tooltips.
• These tooltips provide detailed information on all the taxes applied to that particular invoice item.

Step 3: Viewing Taxes on Mobile

1. Mobile View:
   • Tax details are displayed in a single line, reducing clutter and improving readability.
   • The detailed breakdown of taxes in the Order Summary is also available in the mobile view.

Step3: Applying Taxes to Products:

• In the product configuration section, select the option to 'Charge Tax on This Product.'
• Choose the applicable tax rate(s) from the drop-down menu.

Product-Level Tax Settings:

Businesses can also specify whether products are tax-inclusive or tax-exclusive during creation or editing. This can be set globally under Payments > Settings > Taxes

 

or on a per-product basis. If no selection is made at the global level, the default is tax-exclusive. Existing products will default to "As per Global settings," but can be individually adjusted.

View in order forms:

 View in invoices:

View in funnels:

Step 4: Viewing Taxes on Invoices and Order Forms:

• When adding products to an invoice or an order form, the system will automatically include the configured tax rates, displaying a more organized view of taxes, with a column showing the cumulative total of taxes, enhancing user experience.

Step 5: Adjustments and Deletions:

• Should tax rates change, update the tax settings to reflect new rates, which will automatically update all products. Deleting a tax rate will remove it from any associated products. Here’s an example of what that would look like in a funnel.
  
  
  • Navigate to the 'Funnels' section and select the funnel where you want to add the taxed product.
  • Go to the relevant step in the funnel, such as a product selection or payment page.
  • Add the 'Demo Product with VAT' to the funnel.
  • Fill out any required fields and proceed to the next step of the funnel to review the product details.

• Save your changes. As you review the order form or payment summary within the funnel, you should see the added taxes displayed next to the product price. The taxes will show both the percentage applied and the exact tax amount calculated based on the product's price.

Automatic Tax Calculation for Business Users

Business users can automatically determine taxes for their customers based on the address information provided during checkout and the type of product purchased. This feature applies to all transactions made through order forms (including membership courses), online stores, invoices, and payment links. The tax amount is calculated dynamically using the customer's state and zip code in combination with the product category.

• Availability: This dynamic tax calculation is available exclusively for sellers operating in the US. For international transactions, manual tax rates can be applied directly to products and added to the subtotal during checkout

How to Enable Automatic Tax Calculations:

1- Navigate to Payments -> Settings -> Taxes.

2- Enable the Automatic Tax Calculation option.

3- Select the nexus addresses/states where you want to collect taxes.

4- Define a default product tax category, which will serve as the default for all your products.

5- Optionally, specify different tax categories for individual products when creating or editing them under Payments -> Products.

Additional Information:

• Taxes are applicable for both one-time and recurring products.
• A detailed breakdown of the taxes paid will be available on the order details and transaction details pages.

FAQs

1. How is tax displayed on invoices and order forms?
Taxes are shown in a dedicated column displaying the cumulative total, with a detailed breakdown available in the Order Summary.

2. Can I set different tax rates for individual products?
Yes, you can specify tax rates per product under Payments > Products, or set a default tax category in Payments > Settings > Taxes.

3. What happens if I delete a tax rate?
Deleting a tax rate will automatically remove it from all associated products. You may need to update product tax settings manually if required.

4. How does automatic tax calculation work?
For US-based sellers, tax is calculated dynamically based on the customer’s state and zip code at checkout. Businesses must enable address collection for accurate tax computation.

5. Can I adjust tax settings after an invoice is created?
Yes, but changes will only apply to future invoices. Previously issued invoices will retain the tax settings that were in place at the time of creation.