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Tax Selection for Calculation

Zuora

Tax Selection for Calculation

Zuora offers the ability to select the tax rate behavior of refunds or additional unit purchases resulting from dynamic subscriptions.

With the Tax Selection for Calculation feature, you can specify which tax rate is used for calculation in the following scenarios:

  • Tax rates are changed within a billed period during the lifecycle of subscriptions.
  • Changes are made to active subscriptions by creating amendments or orders.

You can directly use the Apply new tax rate for additional units purchased and old tax rate for returns? billing rule to specify which tax rate to use in the rating process when changes are made to subscriptions.

To use this feature, you have to set the billing rule to Yes. See Define Billing Rules for more information about this billing rule.

Supported operations

This feature supports billing operations for one amendment or order before billing, such as updates in product quantity, price, or product description.

Limitations

This feature does not apply to the billing operations in any of the following scenarios:

  • Updating the billing period alignment or trigger condition in a subscription by creating one subscription or order
  • Updating a product in a subscription and canceling the subscription by creating two amendments or an order covering two or more order actions
  • Updating a product in a subscription and removing a product by creating two amendments or an order covering two or more order actions
  • Updating a product in a subscription and changing the terms and conditions by creating two amendments or an order covering two or more order actions
  • Updating a product in a subscription and suspending the subscription by creating two amendments or an order covering two or more order actions
  • Updating a product in a subscription and changing the BCD by creating two amendments or an order covering two or more order actions
  • Setting the Invoice/Credit Memo generation rule billing rule to Put all negative charges on a credit memo