Add taxes

Manage tax rates from Payments > Settings > Taxes: create a rate once, attach it to products or add it to invoices, and JourneyCARE calculates the tax for every charge. You can also control how manual and automatic taxes interact, read rates down to 4 decimal places, and set up Stripe tax management as a workaround for SaaS direct payment links.

Create a tax rate

Create a tax rate from Payments > Settings > Taxes when you need a rate available for products or invoices.

1. Open Payments > Settings > Taxes.

2. Click Add Tax or Create Tax.

3. Enter the tax name, rate, and optional description, tax ID number, and tax agency (if applicable).

4. Click Add.

The tax now appears in the list of taxes.

Attach a tax rate to a product

Attach tax rates to a product while adding or editing it, and the rate is offered automatically at every checkout that uses that product.

1. While adding or editing a product, check Attach Tax Rates.

2. Select one or more tax rates from the dropdown, which lists every manually added tax rate.

3. Click the + icon to add a new tax rate at this point instead.

Tax rates attached to a product are automatically visible whenever the product is added to any checkout except invoices.

Add taxes to an invoice

Add taxes to an invoice from Payments > Invoices when a product's attached rates don't cover it, since product-attached rates don't appear on invoices.

1. Open Payments > Invoices and create a new invoice or edit a draft invoice.

2. Click Add Tax next to a product.

3. In the Add Taxes popup, check the box for each tax you want to apply.

4. Click Save.

The selected taxes are calculated in the invoice.

Delete a tax rate

Click the delete icon next to a tax rate in the list under Payments > Settings > Taxes to remove it.

Manual taxes and automatic taxes

Manual tax rates (except for invoices) work as a fallback when automatic taxes are also enabled. To use only manual tax rates in certain jurisdictions, disable automatic tax rates or update the nexus addresses for which you want manual instead of automatic taxes.

For example, to use automatic taxes everywhere in the United States except Texas, remove Texas from the list of Nexus addresses in your Automatic taxes settings. To use only manual taxes for all customers, fully disable automatic taxes.

Tax rate precision and rounding

JourneyCARE calculates and displays tax rates up to 4 decimal places (for example, 7.1250%), while tax amounts round to 2 decimal places based on currency standards (for example, $1.78).

Tax rates display with 4 decimals across invoices, estimates, subscriptions, transaction details, receipts, and checkout experiences. They also export with 4 decimals in CSV exports and appear with 4 decimals in supported API responses.

Stripe Tax workaround for SaaS payment links

For SaaS direct payment links, configure tax categories such as VAT or Sales Tax in Stripe itself, and Stripe's Tax management service calculates and displays tax during checkout. This workaround is temporary while a primary tax management solution is in development.

Set up tax rates in Stripe

Create each tax rate in Stripe before you apply it to subscriptions.

1. Log in to your Stripe account.

2. Navigate to Products > Tax Rates and click New.

3. Enter the tax name, the percentage rate, and whether the rate is inclusive or exclusive. Inclusive means your organization covers the tax; exclusive means the customer pays tax on top of the plan price.

4. Click Add Tax Rate.

Apply tax rates to existing customers

Edit the customer's subscription in Stripe to add a tax rate you created.

1. In Stripe, go to Customers and select the customer whose subscription you want to edit.

2. Click Edit subscription.

3. Under Add Tax, select the tax rate you created.

4. Save the changes.

Apply tax rates for new customers

After Stripe's Tax management service is activated on your account, pick tax categories directly on your SaaS products.

1. Add the tax rate to the product's payment link, and define tax behavior on individual prices to decide whether the price includes tax (no additional charge to the customer) or excludes it (tax is charged extra to the customer).

2. Copy the SaaS direct sale link and share it with your prospects.

Frequently asked questions