Chargify provides the ability to define custom taxes that are collected when a user subscribes to your product.
Taxes are defined on the site level and are available to all product families of the site. To apply a tax to a product or component, you first create the tax and then mark the product or component as taxable.
To create a new Tax, click on the Products tab at the top, and then click on the ‘Taxes’ button. From there, click the ‘Create New Tax’ button. There are 2 types of taxes, which we discuss below, General Tax and European Taxes.
The General Tax allows you to apply a percentage rate tax on a specific geographic region. The region may be as broad as an entire country or as specific as a state/province.
The EU VAT type works just like the General Tax, with a few distinctions:
Tax Rules can only be defined on the country level, not state/province EU customers are given the ability to opt out of the tax on the Public Pages if they provide a valid VAT number (Note: only customers outside of your own country are allowed to opt out.)
In order to be as flexible as possible, Chargify provides the ability to define your own tax scenarios. Taxes are comprised of one or more ‘Tax Rules’. A Tax Rule specifies a geographic region and a percentage rate to be applied to that region. The geographic region can be either an entire country, or a specific state/province within that country.
Unless otherwise specified, all products and components are NOT eligible for taxes. Once a tax is defined, you will need to update your existing products and components so that they can be taxed. To do this, edit the product or component and check the This product is subject to taxes checkbox.
For more information on applying taxes to Products, please refer to our Product documentation.
You will also want to ensure that you collect a Billing or Shipping address, depending on how you have defined the taxes to be calculated. To do this, edit the product and check “Require Billing Address” and/or “Require Shipping Address”.
When applied in conjunction, taxes are applied to the total cost of the subscription AFTER the coupon adjustment has been accounted for.
You can view and export a history of all tax charges by clicking the ‘View Tax History’ button at the top of the Taxes page.
Here is a sample of what information the tax history page displays:
The following is displayed:
- ID: This ID is in reference to the transaction that contains the tax.
- Date: Date the tax was applied
- Subscription ID: ID of the Subscription
- Subscriber: Name of the Subscriber
- Product: Refers to the Product to which tax is applied.
- Type: Since this is a transaction, the type of transaction is listed. In this case, this transaction is a charge.
- Tax: Type of tax. Can also be EU, or state-based tax.
- Amount: Amount of the tax.
Select View Details to inspect a particular tax application: