Taxes

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Taxes

Zuora offers many options for working with tax in billing operations, such as Zuora Taxation Module, Avalara Tax Engine Integration, integration with other third-party tax software, and creating a product rate plan charge for tax.

Zuora Taxation Module

Zuora Taxation Module allows you to identify which charges within your product catalog are taxable, calculate taxes based on granular sold to address details, and specify which customers are tax exempt. With our taxation module, you have the ability to apply tax rates for addresses with matching performed at any level from country, state, county, city, zip, or a string value for the tax region. Additionally, Zuora Billing allows you to apply up to three independent taxes to a single charge, and each tax can have a type of Flat Fee or Percentage.

See Zuora Tax for more information.

Integration with Third-Party Tax Engines

Zuora provides the following options for integration with a third-party tax engine:

  • Zuora is tightly integrated with the Avalara’s AvaTax for Sales and Use tax engine. To learn how to enable and configure Zuora's Avalara integration, see Avalara Integration.
  • You can integrate with the CCH SureTax tax engine via Zuora's CCH SureTax Connector app. This app is available from the Connect Marketplace.
  • You can integrate with the ONESOURCE Determination (formerly Sabrix) tax engine via Zuora's ONESOURCE Determination Tax Connector app. This app is available from the Connect Marketplace.
  • You can integrate with the Vertex tax engine via Zuora's Vertex Tax Connector app. This app is available from the Connect Marketplace.
  • You can integrate with Avalara’s AvaTax for Communications tax engine via Zuora’s AvaTax for Communications Connector app. This app is available for from the Connect Marketplace.

See Connect Marketplace for information about purchasing and installing apps for your organization.

Create a Product Rate Plan Charge for Tax

This method is considered a workaround.

If you do not use Zuora Taxation Module or integrate with a third-party tax vendor may have taxes added to their product using a product rate plan charge created specifically for the tax amount. By doing this, the rate plan charge for tax gets added to the subscription as you would with regular charges.

Review these additional considerations before using this method:

  • You must calculate the tax amount when adding the charge to a subscription (whereas, when using one of the above 2 methods, taxes get automatically calculated upon invoice generation).
  • The tax charge is independent of your regular charges and thus any changes to the subscription for regular charges will not automatically update the tax charge.
  • If an end customer upgrades their subscription and there's an increased charge for that product, the tax also goes up and the tax amount must be amended in the subscription accordingly.
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