Taxes

Zoho Checkout lets you stay compliant with international tax regulations across all your payment pages. Configure custom tax rates, manage exemptions, and create tax groups to handle regional and national tax rules seamlessly, regardless of where your business is based.

Tax Rates

You can create tax rates or tax groups and assign them to the payment pages you create. Here’s how:

Create Tax Rates

To create a new tax rate:

Go to Settings and select Taxes.
Navigate to the Tax Rates tab.
Click +New Tax.
Enter the Tax Name and Rate(%).
Check the option This tax is a compound tax, if this is a tax that is calculated on top of a primary tax.

Insight: In some countries, you might have to collect more than one tax from your customers. One tax could be for you to pay to your local province and another to a different tax authority, say, federal authority. In such cases, the provincial tax is applied on the total that includes the item or invoice amount as well as the federal tax amount. Such taxes are called as Compound Taxes.

Click Save.

You will have created a tax rate.

Tax Group

To create a tax group:

Go to Settings and select Taxes.
Navigate to the Tax Rates tab.
Click +New Tax Group.
Enter the Tax Group Name and select the Associated Taxes
Click Save.

A new tax group will be created.

Advanced Tax Automation

Advanced Tax Automation in Zoho Checkout automates the selection of the applicable tax rate during the checkout process. By creating Tax Rules, you can define specific criteria such as the customer’s location or the item’s tax category to ensure the correct tax rate is automatically applied to a payment.

Note: Advanced Tax Automation is only available in the professional plan of Zoho Checkout. Refer to our pricing plans to know more.

Enable Advanced Tax Automation

To enable advanced tax automation:

Go to Settings and select Taxes.
Navigate to Tax Settings.
Check the option Enable Advanced Tax Automation to manage tax rates and automate tax applied on transactions.
Click Save.

You will now be able to create and associate tax rules to manage taxes in your organization.

Tax Rule

When you create a Tax Rule in Zoho Checkout, you define specific locations such as provinces or territories and map them to their corresponding tax rates. Once the rule is configured, you associate it with the relevant Payment Pages. From that point on, whenever a customer makes a payment, Zoho Checkout automatically detects their billing or shipping address and applies the correct tax rate to the transaction based on the rules you have set up.

Set Up Tax Rules

To create a tax rule:

Go to Settings and select Taxes.
Navigate to the Tax Rules section and click + New Tax Rule.
Enter the Tax Rule Name.
Select Country, State and Tax Name.
Click Save.

You will have created a tax rule.

Edit Tax Rules

You can update the tax rules you create. Here’s how:

Go to Settings and select Taxes.
Navigate to the Tax Rules section.
Hover over the rule you want to modify and click the Edit icon.
Make the necessary changes and click Save.

Note: You cannot edit a tax rule that is associated with transactions.

Tax rule will be updated.

Delete Tax Rules

When you no longer want to use a tax rule you can delete them. Here’s how:

Note: You cannot delete a tax rule that is associated with transactions.

Go to Settings and select Taxes.
Navigate to the Tax Rules section.
Hover over the rule you want to delete and click the Bin icon.
In the confirmation pop-up, select Delete.

Tax rule will be deleted.

Configuring Tax for Items in your Payment Pages

You can configure tax rules for goods and services while creating or editing a payment page. Here’s how:

Go to Payment Pages.
Create a new payment page or click Edit next to an existing one.
Navigate to Tax Information under Configure Page.
Select Tax Rule.
Click Save & Publish.

Now, the taxes configured will be applied to the payment page you’ve created.

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