The Tax settings can be done from Site > Tax
How to add Global Tax:
Click the button 'Add New Tax Rate'
You can see Add New Tax Rate window.
Country: Select the country from the drop-down menu
Country Tax Rate: Enter the rate of the Tax
Tax Name: Enter a Tax name
Tax Category: Select the Tax Category/ CategoriesDigital - Apply Tax based on the Customer’s location
Physical / Services - Apply Tax based on the Seller’s location
Important: Starting January 2025, all live content and courses containing live sessions must be filed under the digital tax category.
States
For US and Canada, you can add state level Tax.
When you select the country United States or Canada, you can see the option to Add State Tax.
Click the button Add State Tax
State: Select the state
Tax Name: Give a name
Tax Rate: Enter a Tax Rate
Option: You can decide if the Tax should be added to the Country Tax or not.
Example:
If you set as in the screenshot given above, the Tax will be 24% in the state Alabama.
If you select Ignore Country Tax, the Tax will be only 4%.If all settings are done, click Save button.
How to Enable EU VAT
You can charge EU VAT for your customers from the EU by turning it On. The EU includes all European Union countries (excludes UK).
If you Enable this option, EU VAT will be collected when applicable.
EU VAT Settings:
You have the option to reduce your tax burden by letting Zenler handle the EU VAT reporting and payment to tax authorities. You can choose either Zenler to pay EU VAT on behalf of you, or you can pay yourself.
If you want Zenler to report, and pay the EU VAT on behalf of you, select 'Zenler will report and pay the tax on behalf of you'.
If you opt for this option, Zenler will act as a seller on your behalf and collect, report, and pay EU VAT to tax authorities (VAT MOSS ROS: https://www.ros.ie/vatmoss-web/vatmoss.html )
If you would like to report and pay EU VAT yourselves select the option 'You will be responsible for filing and remitting tax to respective EU governments'.
Then the payment should be done by you to VAT MOSS.
In both cases, a detailed report of the purchase including tax will be shown to you.
VAT ID:
If a buyer is from an EU country, there will be an option to add a VAT ID for all Tax categories. If the purchase is tax applicable and if the user submits VAT ID, they will be exempted from tax.
Note:
If the buyer and vendor is from the same EU country and if the buyer submits a VAT ID, VAT is not zero-rated.
i.e, for sales within the same EU country VAT is charged even with a valid VAT ID.
Additional Tax Settings
Add Tax on top of price
The tax will be calculated and added to the price to arrive at the total payable amount.
Tax included in price
If you choose this option, the tax will be included as part of the price.
How to set Tax Category for a product
The Tax Category can be set with each pricing plan of a product (Course/Live Class/ Live Webinar)
If you have set a global tax/enabled EU VAT, there will be an option to set the Tax category while adding or editing a pricing plan.
Tax Category comes under 3 categories below -
Digital - Apply Tax based on the Customer’s location
Physical / Services - Apply Tax based on the Seller’s location
Tax Exempt
Digital :
The Tax is calculated based on the buyer's country. (i.e., Digital Category does Not depend on sellers location)
Physical / Services :
For Physical / Services, Tax is calculated based on the seller's country.
Online Courses with full fledged Live human interaction like live sessions may fall into this category but it is your responsibility to decide which category your product belongs to, as Zenler cannot advise you on tax matters, you would need to discuss with your tax consultant.
Tax Exempt:
If this category is chosen NO tax is calculated.
Important: It is your responsibility to select the correct Tax Category.