Automatically apply your fixed tax rate to all monetary prices in the location.
Enable taxes
Set a default tax rate for all monetary prices in a location:
Go to Spacebring > press the (...) button next to the location name > Location settings page > Billing > "Taxes" tab.
Toggle on the "Taxes" switch.
Choose the necessary "Tax type" from the dropdown. It determines what tax name will be shown to customers on invoices and receipts.
4. Set your "Tax rate" and select the "Tax option".
Inclusive tax is a part of the price. If you choose the inclusive tax option, set prices for all resources and services with the tax included (gross).
Exclusive tax applies on top of the price. If you select the exclusive tax option, set prices for all resources and services excluding the tax (net).
5. Manage the "Display tax-exclusive prices" switch.
Enable it to display all amounts without tax on the invoice and receipt breakdown. Some EU countries require this.
Disable it to display all amounts with tax on the invoice and receipt breakdown.
The "Display tax-exclusive prices" setting applies only if your location tax option is "Inclusive". If it's "Exclusive", the invoice and receipt breakdowns always show amounts without tax, regardless of this setting.
An example of an invoice with tax-inclusive amounts:
An example of the same invoice with tax-exclusive amounts:
6. The tax will be auto-saved and applied to all future purchases unless the custom tax rate is set for specific products and services.
Edit taxes
Change the default tax rate for all monetary prices in a location:
Go to Spacebring > press the (...) button next to the location name > Location settings page > Billing > "Taxes" tab.
Change your tax type, tax rate, or select another tax option.
Disable taxes
Disable a default tax rate for all monetary prices in a location.
Go to Spacebring > press the (...) button next to the location name > Location settings page > Billing > "Taxes" tab.
Disable the "Taxes" switch.
Changes to the tax rate, tax option, or disabling the "Taxes" switch apply only to new purchases and newly issued invoices or receipts.
Changing the tax type, however, updates all invoices and receipts, both past and future.
How taxes work
Users see the price with the tax included in the checkout.
If the taxes in the whole location are enabled, you can set custom tax rates for certain plans, subscription items, invoice items, shop products, and events.
How discounts affect taxes
Discounts are subtracted from the original price of an item—i.e., the price you enter for the item—before taxes are calculated.
After the discount is applied, the system (re-)calculates the taxable amount and tax amount from the remaining, discounted price. Since applying a discount reduces the taxable amount, the new taxable amount is explicitly indicated in brackets next to the tax on the invoice or receipt.
Inclusive tax example
In the case of an inclusive tax, the discount is subtracted from the original (tax-inclusive) amount. Then, taxable and tax amounts are recalculated based on the new, discounted amount.
Examples of calculations after a discount application:
Invoice/receipt properties | Example 1 | Example 2 |
Original item amount (tax-inclusive) | $100.00 | $100.00 |
Discount | $50.00 | 10% |
Discount amount | $50.00 | $10.00 |
New discounted amount | $50.00 | $90.00 |
Tax rate | 10% incl. | 10% incl. |
New taxable amount | $45.45 | $81.82 |
New tax amount | $4.55 | $8.18 |
Total | $50.00 | $90.00 |
Example of an invoice before a discount:
Example of an invoice after a discount:
If you're using "Inclusive" tax with the option to "Display tax-exclusive prices" enabled, the Unit amount and Amount will also be adjusted on the invoice and receipt breakdown to reflect tax recalculations after the discount is applied.
Exclusive tax example
In the case of an exclusive tax, the discount is subtracted from the original (tax-exclusive) amount. Then, taxable and tax amounts are calculated based on the new, discounted amount and added on top.
Examples of calculations after a discount application:
Invoice/receipt properties | Example 1 | Example 2 |
Invoice item original amount (tax-exclusive) | $100.00 | $100.00 |
Discount | $50.00 | 10% |
Discount amount | $50.00 | $10.00 |
New discounted amount (Original amount - Discount amount) | $50.00 | $90.00 |
Tax rate (Applies to the new discounted amount) | 10% excl. | 10% excl. |
New taxable amount | $50.00 | $90.0 |
New tax amount | $5.00 | $9.0 |
Total | $55.00 | $99.00 |
Example of an invoice before a discount:
Example of an invoice after a discount:
Notes
A discount modifies the item’s price. It's not a separate item, so it doesn't have its own tax breakdown and other attributes that invoice items have.
Since tax is applied to the invoice item amount after the discount, the discount amount always stays the same, regardless of tax settings.