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Enabling taxes and using tax calculator

Enabling tax calculations on your checkouts was never easier. Keep reading to learn how it works for your store!

Subbly's tax calculator

Our built-in solution is completely free to use and is capable of handling regular taxation applicable to most business entities (other use cases at the end of the page).

Currently, this solves tax calculations for all countries except the following ones:

  1. Hong Kong
  2. Norway
  3. Switzerland
  4. New Zealand
  5. Singapore

How it works?

Easy as pie! All you have to do is to enable the tax settings for your store from this page. We will automatically do the hard work for you by making appropriate tax calculations on the checkout depending on your state of residence and the customer's location.

Since we handle all the logic for taxation rules based on location it is essential that the customer provides correct information about his country and state of residence, and that your location was correctly added on your account page as well.

Having a different country of trade than the store account address won't make any interference with taxes being added on the checkout. 

VAT included in price or VAT on top of the price?

Just below the Tax Enabled toggle in your Admin, there's an additional option to Include VAT in price:

Choosing VAT in price means your product price already includes the tax amount, so when calculating taxes, total to be paid will not increase for your customers:

On the other hand, if you do want to charge VAT on top of the product price, then you must keep the Include VAT in price toggle disabled so the tool calculates taxes in addition to the price set for the product:

Will enabling tax calculator affect my current customers?

If you choose to enable the tax settings when you already have active subscribers, this will affect your existing customers as well for the future payments. 

How to export taxes collected? 

You are able to export all your transactions at any point from here within your admin. Refer to this article for further information.

When should I use TaxJar?

Only if you need a more comprehensive way of calculating taxes because:

  • of the type of goods you sell
  • you have significant presence or sales tax nexus in more than one state or country
  • or simply because you want more advanced functionalities

Then you should consider using our TaxJar integration instead of our built-in calculator as the former will better adapt to your business taxation requirements. You can see how to set up the TaxJar app here.  

Passing product tax code to Taxjar

If you're based in the US and you need to be able to pass specific product tax code over to Taxjar for more precise tax calculation, don't forget that you can choose the product tax type from inside the product creation widget under Additional settings as seen down below

Exception notifications

There might be sometimes when you'll get an email notification reporting a tax calculation exception occurred meaning taxes weren't added to the invoice. Most usual reasons for this event are:

  • 400 Bad request - the zip code provided by your customer during checkout is not taxable. E.g. is not valid, doesn't pertain to your state's from address (U.S.).
  • 429 Rate Limit Exceeded - Your TaxJar account has hit rate limits and you'll need to upgrade your account. 

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