Managing your business

Business solutions & apps

Pricing Plans: Setting Up Tax Collection

Add your business location to calculate tax for Pricing Plans. Depending on where you're located, you may be required to collect tax when selling pricing plans. You can choose whether to include tax in the price or add it at checkout.

Important:

Different tax rules apply in different regions. Consult with an accountant or with your local tax authority for specific information relevant for your business.
After setup, tax is applied to all plan buyers, regardless of location.
You can only set one fixed tax rate for all of your plans.

Adding tax to pricing plans

You can add tax to your pricing plans at any time. This is useful for complying with local, state or federal laws, depending on your location. You can choose to include the tax in the price of your plans, or add it to the total at checkout.

To add tax to pricing plans:

Go to Pricing Plans Settings in your site's dashboard.
Click Set Up Tax next to Tax.
Choose from the following options to determine how tax is calculated for your pricing plans:
- Customer location: Calculate tax based on where your customer is located.
- Your business location: Calculate tax based on your business address for all customers.
Click Manage tax next to Tax settings.
Set up how your business collects tax:

Tax locations

Start collecting tax from customers. Set where you want to collect tax, and then manage your rates manually or automatically.

Click + Add Location under Tax locations.
Click the Country drop-down and select the relevant location.
Note: Depending on what you select, you may need to select another option (e.g. state or region).
Click Add.
Add the relevant Tax rates (e.g. Cancellation fees).
(Optional) Enable the Advanced mode toggle to edit the tax names that are shown at checkout or add multiple rates per tax group.
When ready, click Save.

Tax settings

Select how you want to collect tax:

Tax should be added at checkout: The tax is added on top of the plan price during checkout. At checkout, your clients see the tax that was added.
Tax is already included in my prices: Tax is included in the plan price. At checkout, your client sees the breakdown.

Tax groups (optional)

Click + Add Custom Group.
Enter the Group name.
Click Add.

Pricing Plans: Setting Up Tax Collection

Customer tax exemptions (optional)

Allow certain customers to be exempt from some or all taxes, either because they aren’t required to pay taxes or through conditional exemptions based on customer groups.

A screenshot of the Tax Settings page in a site's dashboard.

Managing tax on pricing plans

You can update how you charge tax on your pricing plans from the dashboard. This is useful when there are changes in the tax system where your business operates. You can also change how you display the taxes you charge your customers.

To manage the tax on your pricing plans:

Go to Pricing Plans Settings in your site's dashboard.
Click Set Up Tax next to Tax.
Click Manage tax next to Tax settings.
Make the relevant changes (e.g. Tax locations / settings).
Click Save.

Removing a location from collecting tax

You can stop charging tax on your pricing plans if your business qualifies for a tax exemption or if there has been a change in tax regulations where your business operates. Make sure to check with your accountant or financial advisor before you stop charging tax on your pricing plans.