Handling taxes is an unavoidable part of running a business. You want your business to comply with the law and keep your finances in order. Being accurate and efficient with your taxes benefits all aspects of your business, and to make this process easier you can handle it directly in your CRM.

Tax Settings allows you to add, manage, and apply taxes effectively. This powerful tool saves time, reduces mistakes, and smooths financial operations.

Tax Settings #

You can manage your taxes by adding them to products or invoices directly, keeping a record to follow with every sale. How you add them depends on the type of tax you need, but to start, go to the Settings tab inside the Payments section and select the Taxes option on the left.

Including Tax in Prices #

In your tax settings, you can define whether product prices should include tax by default. Clicking YES includes tax in the listed purchase price, so customers see the full amount including tax upfront, while choosing NO excludes tax from the displayed price and adds it only at checkout. Choosing the right option depends on whether you want customers to see the total price (with tax) immediately or only at checkout.

Adding Tax #

By clicking the +Add Tax button you can manually create a new tax that applies to the product you are selling. To do so:

• Set the name of the tax for easy identification in the system.
• Add a percentage rate for your tax, for example 5% or 12%.
• Enter a short description as needed; this will be shown to customers.
• Enter the Tax ID and Agency information for your internal purposes.

Deleting Tax #

You can delete a tax by clicking the bin icon on the right of the tax you want to remove.

Automatic Taxes #

Enable the Automatic Taxes feature to seamlessly calculate taxes based on the customer’s address. Taxes are automatically applied during checkouts and invoice payments across all checkout types, including Funnels, Payment Links, Invoices, Estimates, and Ecommerce Stores, and are compatible with all supported payment providers.

Once this feature is activated, you must select your default tax category from the dropdown menu. Next, select your Nexus Address locations. These locations define your tax obligations across different regions and ensure accurate, compliant tax calculations for global checkouts. Be sure to add all countries where your business is required to collect taxes. For businesses operating in the United States and Canada, you must also specify the states or provinces where tax collection applies.

When adding a Nexus Address for a country, you can also enter the business Tax ID. If the provided Tax ID qualifies for any additional tax benefits or special tax applications, these will be automatically factored into the tax calculations at checkout. Click the three dots to edit the business Tax ID for a particular country or remove the country from your list entirely.

By following these steps, you can efficiently manage taxes for your business and ensure you are following the rules in your region, keeping your financial operations running smoothly.

Frequently Asked Questions #

How do I handle tax exemptions for specific customers? #

Create a tax with a 0% rate and apply it to the exempt customer’s invoice.

Can I apply taxes to one-time purchases? #

Yes. By adding taxes to an invoice, you can apply taxes to one-time purchases using the Tax Settings feature.

Can I generate tax reports? #

Tax report generation is not available natively, but you can export invoice data, including tax information, and use third-party tools or accounting software to generate reports.

Where do I configure tax settings? #

Go to the Settings tab inside the Payments section and select the Taxes option on the left.

How does Automatic Taxes calculate the correct rate? #

Automatic Taxes calculate taxes based on the customer’s address and your configured Nexus Address locations, applying them across all checkout types and supported payment providers.

What is a Nexus Address? #

A Nexus Address defines the regions where your business has a tax obligation, ensuring accurate and compliant tax calculations. In the US and Canada you must also specify applicable states or provinces.