# Taxes

{% hint style="info" %}
CheckoutChamp offers a basic suite of tax features but is not a full tax engine. Investigate our integrations with [Avalara ](https://help.checkoutchamp.com/crm/plugins/tax-services/avalara-tax)or [TaxJar ](https://help.checkoutchamp.com/crm/plugins/tax-services/taxjar)for complex tax situations.
{% endhint %}

{% hint style="info" %}
Tax is calculated on all products.  It is not possible to upload any tax exemptions.  However a tax rate of zero can be set by product tag.
{% endhint %}

* [Tax Profiles](#taxes-taxprofiles)
* [VAT (Value-Added Tax)](#taxes-vat-value-addedtax)
* [API](#taxes-api)
* [Reports](#taxes-reports)
* [Notifications](#taxes-notifications)

***

## Tax Profiles <a href="#taxes-taxprofiles" id="taxes-taxprofiles"></a>

To create a tax profile for a campaign, navigate to CRM → Campaigns, edit a campaign, and select the Tax Profiles section.

<figure><img src="https://3790748257-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FT43PzcNjyZtWby9yrGd3%2Fuploads%2FEMQnElvVgaW6A1dTSa6S%2Fimage.png?alt=media&#x26;token=e3253682-f706-4725-81af-aa4e74c79056" alt="" width="289"><figcaption></figcaption></figure>

Choose **Country** (or Zone), **State** (Always ALL when a Zone is selected), and **Tax Rate**.

Optionally enter a **Postal Code.**  Postal Code is ignored when a Zone is selected.

Optionally enter **Product Tags**.  Product tags are case-insensitive.  Separate multiple tags with a comma.

**Tax Rate** must be entered with decimals (.01 = 1%).

Check the **Apply to Shipping** option to tax shipping.

Check the **Exclude Rebills** option to exclude the tax calculation on rebills.

Region/Country is determined on an order by the shipping address. Non-shippable products will use the billing address if a shipping address is not provided.

## VAT (Value-Added Tax) <a href="#taxes-vat-value-addedtax" id="taxes-vat-value-addedtax"></a>

A tax may be embedded into product prices. Use the **Include Tax in Final Price (VAT or GST)** option on Tax Profiles.

When selecting this option some VAT details are displayed on the Tax Profile. Choose each rate to see details.  You must still enter the desired tax rate. The VAT details are informational only.

<figure><img src="https://3790748257-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FT43PzcNjyZtWby9yrGd3%2Fuploads%2FYcj4G0NC8t3JxZ5B95dF%2Fimage.png?alt=media&#x26;token=2496304c-dc6d-46d4-9726-6643556b2512" alt="" width="375"><figcaption></figcaption></figure>

VAT is calculated on all product prices. It is also calculated on shipping if **Apply to Shipping** is enabled.  Different VAT rates may be used on different Product Tags in the same geographic area.

The **Add Tax to Price** option controls how VAT is calculated compared to product prices.  Choose for VAT to add to campaign product prices for customer display OR to show the customer the campaign product price and subtract VAT for reporting only.

* If **Add Tax to Price** is enabled then set campaign product prices to be exclusive of VAT.  VAT will be calculated and added to prices on pages and autoresponders for customer display.  This makes the display price dynamic based on VAT.
* if **Add Tax to Price** is disabled then set campaign product prices to be inclusive of VAT.   Pages and autoresponders will display those prices but the resulting order saved will have VAT separated from price.  This option can be used, for example, to show all EU consumers the same price regardless of country.

If using CheckoutChamp hosted pages, the VAT calculation on pages is automatic once enabled on the Tax Profile. If an order is in a VAT region then the taxes are calculated based on that region and product prices are adjusted for display to consumers.  It is optional to display VAT on the checkout page.  To display VAT add the "vat" class to the salesTax element in the shopping cart.

<figure><img src="https://3790748257-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FT43PzcNjyZtWby9yrGd3%2Fuploads%2FyuJL6BPA93HJF24999Z3%2Fimage.png?alt=media&#x26;token=0717fa46-ed20-4a88-a4cb-77fbb581805d" alt="" width="375"><figcaption></figcaption></figure>

If using Direct API to send orders to CheckoutChamp, the Campaign Query API includes all campaign Tax Profiles with **isVat** and **addVatToPrice** indicators. Determine the VAT region and use the rates to calculate taxes as needed. This is for display only. When the order is submitted the taxes will be calculated again on our servers. The response from Import Order API or Import Upsell API will include a **vatSubtotal** amount if VAT was used. Each line item will include a **vatPrice** amount. Use these values to properly display a receipt.

VAT is calculated on the discounted product price. For example, if a campaign product is priced at 100 EUR with a 20% VAT and a 10%-off coupon:

* if **Add Tax to Price** is enabled, the final price of the product is 108 EUR (100 x (1 - .10) x (1 + .20)).  The breakout saved on the order is 100 EUR price, 10 EUR discount, 8 EUR sales tax
* if **Add Tax to Price** is disabled, the final price of the product is 100 EUR.  The breakout saved on the order is 75 EUR price, 10 EUR discount, 15 EUR sales tax.

VAT should be displayed to consumers inclusive with price. This is automatically handled on campaign email and sms autoresponders.  It is not handled this way for non-consumer-facing activities. VAT looks the same as sales tax when displayed in CRM. If VAT is sent to gateways or fulfillment houses then it is sent the same as sales tax.

The Order Query API response includes a **vatPrice** amount for each product that was priced with VAT and a **currentVatPrice** amount for each subscription product that will be priced with VAT at the next billing.

## API <a href="#taxes-api" id="taxes-api"></a>

There are several tax options available on API endpoints

<https://apidocs.checkoutchamp.com>

**Query Order**

This API returns salesTax on both the order and item levels. The response also includes a **vatPrice** amount for each product that was priced with VAT and a **currentVatPrice** amount for each subscription product that will be priced with VAT at the next billing. The VAT values are returned only if VAT was used on the order.

**Query Transaction**

This API returns salesTax on the item level. It does not include anything unique for VAT.

**Query Campaign**

This API returns all the campaign Tax Profiles

**Import Order**\
**Import Upsell**

Taxes are automatically calculated from the campaign Tax Profiles, products, and shipping address when an order is submitted. It is not possible to pass a specific tax profile. The API does include a **salesTax** parameter than can be passed to override the campaign Tax Profiles. This should be the total tax on the order. If product prices are passed they should be exclusive of VAT taxes, if the goal is to use CRM tax reporting.

**Order Sales Tax**

This API returns the total calculated tax based on campaign, products, and shipping address. Pass the parameter **getVatPrices=1** to also return product prices inclusive of VAT.

## Reports <a href="#taxes-reports" id="taxes-reports"></a>

**CRM > Reports > Customers > Order Summary**

The Sales Total, Upsell Total, and Net Revenue columns include taxes. A Sales Tax column is included on the report.

**CRM > Reports > Customers > Revenue Summary**

Tax is excluded from this report. Revenue, AOV, and Profit do not include taxes. A Sales Tax column is not included on the report.

**CRM > Reports > Payments > Transaction Summary**

The Sales Amt, Rebill Amt, Gross Revenue, and Net Revenue columns include taxes. A Sales Tax column is included on the report.

**CRM > Reports > Payments > Sales Tax**

Tax can be accumulated by Country, Postal Code, and Currency. Country can be further segmented by State. The report provides a total tax for each grouping.

**Others**

All other reports include tax in the report totals (Affiliates, Projected Billing, Retention, etc).

## Notifications <a href="#taxes-notifications" id="taxes-notifications"></a>

A tax summary email is sent on the first of each month to all emails listed under Account > Notifications > Summary Emails. The email summarizes the previous month tax by Country and includes an attachment by State.