You can create and save multiple tax rates and apply them to invoices, subscriptions, and payments whenever you use checkout.
Tax rates are not automatically set when creating products, invoices, or subscriptions and must be set when you create your tax rate.
Creating a tax rate in the portal
1. Log in to your portal
2. Click Products > Tax Rates
3. Click Add new tax rate
4. Fill out all the fields
5. Click Save. You will be redirected to the home page where you can view all created tax rates
Field definitions
|
Tax type |
This is the display name of the tax that will appear on the customer invoice, checkout, and hosted page. You can select from GST, HST, PST, Custom* |
| Description | The description is for internal use only and will not be visible to the customer |
| Rate | the % of tax applied |
| Exclusive vs. Inclusive | The tax is included or excluded in the invoice subtotal |
| Province | If a particular region is selected and the checkbox to automatically add the tax to invoices is checked, Zūm Rails will add the rate to the customer invoice/subscription by their billing/shipping address |
* If you select custom, you must add a description
Exclusive vs. Inclusive
The following table illustrates a 13% tax rate modifying the total amount due, depending on whether it’s exclusive or inclusive.
| Tax | Subtotal | Tax Due | Total |
| 13% Exclusive | $5.00 | $0.65 | $5.65 ($5.00 + $0.65) |
| 13% Inclusive | $5.00 | $0.65 (already included in the price) | $5.00 ($4.35 + $0.65) |
When determining tax amounts, Zūm Rails rounds to the smallest currency unit (2 decimals) before summing across the entire invoice. You can add multiple tax rates to invoices/subscriptions or for checkout links.