It is very simple and easy to configure tax for your subscription plans. With Axis Subscriptions, you can able to apply tax rates to specific countries and as well as specific regions. Read the descriptions below carefully while configuring the following options.
- Before start creating new tax rate, you should configure basic tax settings. Go to Axis Subscriptions - Configuration - Tax tab.
- Enable Tax : Set this to YES will enable the tax for Axis subscriptions.
Tax type : This is a very important option which deserves careful attention when entering the price of a product. The two options are:
- Excluding tax - If you choose excluding tax, you must enter the price without tax.
- Including tax - If you choose including tax, you must enter the price with tax.
- Display tax information below the prices : Choose YES will display (Incl. 8% tax) or (Excl. 8% tax) below the plan prices in frontend.
EU Vat Settings
It is also possible to apply EU Vat rules in Axis Subscriptions. Go to Axis Subscriptions - Configuration - EU Vat to configure EU Vat rules basic settings.
- Enable EU Vat : Set this to YES will enable the EU Vat rules
- No tax for Non-EU : If you don't want to charge tax for the Non EU customers, choose YES.
- Apply Digital Rules : Choose YES will enable applying digital rules for the digital product subscriptions.
- Validate Tax Number field : If you choose YES, the tax number will be validated and shows error before submitting.
- Buyer ( can be an INDIVIDUAL or company ) from the same country (Home country) are charged tax.
- Buyer ( INDIVIDUAL ) from a different EU country (Germany ) are charged tax.
- Buyer ( COMPANY ) from a different EU country (Non Home country) WITHOUT a valid VAT Number are charged tax.
- Buyer ( COMPANY ) from a different EU country (Non Home country) WITH a valid VAT Number are charged 0% tax.
Creating Tax rates
Go to Axis Susbcriptions > Tax for creating tax rates.
- Now Click Add New Tax button to create new tax rate.
- For example, let we create tax rate for US customers from California
- Tax Name : Enter the name of tax rate. For example, CA Sales tax
- Country : Choose the country to which you have to apply for the tax. For example, United States.
- Province : If you would like to charge tax for all the US customers, just leave this option empty. TO charge the tax only for customers comes from California, choose California.
- Tax Rate(%) : Enter the tax rate in number (Don't use any special character like %). For example, 7.5
- Click Save.
Tax configuration for EU countries
Let us assume that your company is located in : United Kingdom, Bristol And your home country (local ) VAT is 21 %
1. Store configuration
From wordpress dashboard, go to Axis subscriptions > Configuration and choose the country - United Kingdom and choose the Zone - Bristol.
2. Tax rate for Home Country
Tax Name - Home VAT rate
Country - United Kingdom
Province - Bristol
TAx Rate (%) - 21
3. Tax rule for an EU Country
Let us take Germany for this example. Let us say, Germany's VAT charge is: 25 %
Tax Name - Germany VAT rate
Country - Germany
Province - Leave empty, if you wants to charge tax rate for all Germany customers. Otherwise choose province.
Tax Rate (%) - 25