Tax Inclusive or Exclusive Pricing

Understanding how taxes are applied to your products is crucial for accurate pricing and compliance. Stack offers flexible options for setting up tax-inclusive or tax-exclusive pricing models to suit your business needs.

How Taxes Display in Stack

Order Form

• When setting up your order forms, taxes will be displayed according to your chosen pricing model, either included in the price or added at checkout.

Order Details and Summary

• The order details and summary will reflect the tax settings, showing either a breakdown of the base price and tax or a single total price with tax included.

Receipt

• Receipts generated will also follow your tax settings, providing clarity to your customers on how the taxes are applied.

Setting Up Tax Preferences

Global Settings

You can configure your tax preferences globally by navigating to Payments > Settings > Taxes. Here, you can choose between:

• Tax Inclusive: Prices include tax.
• Tax Exclusive: Tax is added to the base price.

If no global preference is set, the default is Tax Exclusive.

Product-Level Settings

When creating or editing a product, you have the option to:

• Follow Global Settings
• Set as Tax Inclusive
• Set as Tax Exclusive

This allows for flexibility if certain products require different tax treatments.

Frequently Asked Questions

1. Can I switch between tax-inclusive and tax-exclusive pricing after setting up my pricing?

   • Yes, you can switch between the two models. However, keep in mind that this may affect existing invoices or quotes, so it’s wise to review outstanding transactions before making changes.

2. How does changing my pricing model affect existing subscriptions or recurring payments?

   • Changing your pricing model might impact existing subscriptions. You may need to manually adjust these to align with the new tax settings and ensure correct tax amounts are applied.

3. What happens if a customer is in a region with different tax rates but I’ve set tax-inclusive pricing?

   • Stack calculates taxes based on the customer’s region. With tax-inclusive pricing, the total price remains the same, but you might need to adjust your strategy for multiple tax jurisdictions.

4. Can I apply tax-inclusive pricing to certain products and tax-exclusive pricing to others within the same account?

   • Yes, you can manage different pricing models by configuring individual products or services with their own settings.

5. How are discounts applied when using tax-inclusive pricing?

   • Discounts reduce the total price, including taxes, and the final tax is recalculated based on the discounted price. For tax-exclusive pricing, discounts apply to the base price before taxes.

6. Can I manually adjust the tax amount on individual invoices?

   • Yes, manual adjustments are possible, but they might not align with automated tax rules or location settings.

7. How does Stack handle tax calculation for international customers?

   • Stack uses region-specific tax rates. Ensure your tax settings are configured to accommodate different international tax rates based on customer locations.

For more detailed guidance, explore the settings within your Stack account to tailor the tax configurations to your business requirements.