Taxes in SubscriptionFlow: Overview and Setup

Taxes in SubscriptionFlow are set up once and then applied automatically to the invoices your subscriptions generate. This article explains where taxes are managed, how to create a tax, and how the Advanced Settings and VAT MOSS options work.

Once a tax exists, you attach it to a plan price. See Make a Plan Price Taxable for that step.

Where to Manage Taxes

1. Click the Settings icon, then open Administration Settings.
2. Under Billing, click Taxes.

The Taxes page has three tabs:

• Tax Rates: your taxes and tax groups.
• VAT MOSS: registration for EU digital sales.
• Advanced Settings: subscription-level tax and automatic tax rules.

Create a Tax

1. On the Tax Rates tab, click New Tax.

2. Choose the Tax Engine. Select SubscriptionFlow Taxes to enter your own rate. If TaxJar is installed, TaxJar Tax Engine is also available. See TaxJar: Complete Guide.
3. Enter a Tax Code / Name, for example Sales Tax.
4. Enter the Rate as a percentage, for example 8.
5. Select Yes, this tax is a compound tax only if this tax is calculated on top of another tax.
6. Click Save. The tax now appears in the list.

To change a tax later, click Edit next to it. Click Delete to remove it.

Advanced Settings

Open the Advanced Settings tab to control how taxes are applied when your team creates subscriptions.

1. Subscription Tax: choose Enabled to make an order-level Tax field available on subscriptions. Taxes set on individual plan prices are applied whether this is on or off.
2. Add Rule: create a Subscription Tax Rule. Each rule picks a tax automatically using:
   • Condition: Billing Country, Shipping Country, or Billing or Shipping Country.
   • Country: the country the condition must match.
   • Product and Plan: a specific product or plan, or All Products and All Plans.
   • Tax: the tax to apply when the rule matches.
3. Apply Tax Rules Automatically: choose Enabled to turn your rules on. When it is Disabled, the rules are kept but not applied.
4. Click Save. Changes on this tab do not take effect until you save.

How rules are applied:

• When your team creates a subscription, the first matching rule applies.
• Its tax is added to each line item that does not already have its own tax.
• If you choose a tax yourself while creating the subscription, your choice is always kept.
• To apply the same rules to one-time invoices your team creates, select Apply on one-time invoices.

VAT MOSS

If you sell digital products to customers in EU member states, open the VAT MOSS tab and turn on Registered for VAT MOSS. This lets you record and report VAT for those sales.

Related Articles

• Make a Plan Price Taxable
• Tax Each Line Item of a Subscription Separately
• Use a Different Tax on Each Price of a Plan
• Combine Taxes with a Tax Group
• TaxJar: Complete Guide