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 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
See Zuora Tax for more information.
This feature is in Limited Availability. If you wish to have access to the feature, submit a request at Zuora Global Support.
To learn how to enable and configure the Avalara Tax Engine, see Avalara Integration
In addition to Avalara, a number of other third parties offer tax services, such as Vertex and Sabrix. Integration with these services is possible, and requires a consultation with Zuora Global Services.
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: