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To access tax settings, go to Payments → Payment Settings → Taxes. You must have at least one payment integration connected to create billable tax rates.
Tax settings overview
The Taxes section in Payment Settings is the central hub for all tax configuration. From here you can:- Create and manage tax rates
- Set the global tax behavior (inclusive or exclusive)
- Configure international VAT nexus addresses
- Enter your Tax ID or registration number for display on invoices
Creating a tax rate
Name the tax rate
Enter a descriptive name that will appear on invoices and order summaries — for example:
| Name | Common use case |
|---|---|
| Sales Tax | US state or local sales tax |
| VAT | European Union value-added tax |
| GST | Canadian or Australian goods and services tax |
| HST | Canadian harmonized sales tax |
Set the percentage
Enter the tax percentage. For example, enter
10 for a 10% tax rate. The platform accepts decimals — for example, 8.875 for New York City’s combined rate.Add a Tax ID or registration number (optional)
Enter your tax registration number in the Tax ID field. This number appears in the tax breakdown section on printed and emailed invoices, which is often required for VAT compliance in the EU and other jurisdictions.
Tax-inclusive vs. tax-exclusive pricing
The HoopAI Platform supports two global tax display modes. This setting applies across your entire account and affects how prices are shown to customers.| Mode | How it works | Best for |
|---|---|---|
| Tax-exclusive (default) | The listed price does not include tax. Tax is calculated and added on top at checkout or on the invoice. | Most B2B billing, US sales |
| Tax-inclusive | The listed price already includes tax. The tax portion is extracted from the price rather than added on top. | EU VAT compliance, retail pricing |
Set the pricing mode
Locate the Tax Behavior toggle and switch between Tax-Exclusive and Tax-Inclusive to match your business model.
Applying taxes on invoices
Taxes can be applied to an invoice in three ways. You choose the method inside the invoice editor for each individual invoice.Enable tax
Scroll to the totals section and click Enable tax (or the + Tax button depending on your layout).
Choose the application method
Select one of the three methods:
| Method | What it does |
|---|---|
| Automatically | Applies the assigned tax rate to every line item based on each product’s configured tax setting |
| Per item | Lets you manually choose a tax rate for each individual line item on the invoice |
| To subtotal | Applies a single tax rate once to the invoice subtotal, regardless of individual products |
Tax is not required on every invoice. Leaving the tax field blank simply means no tax is charged on that invoice. You can add or remove tax on any draft invoice at any time before sending.
Applying taxes to products
Setting a default tax rate on a product means the correct tax is applied automatically whenever that product appears on an invoice, payment link, funnel, or store — without needing to configure it each time.Open the product editor
Go to Payments → Products and open an existing product or click + New Product.
Enable tax on the product
In the product editor, locate the Tax section and toggle on Charge Tax on This Product.
Select the tax rate(s)
Choose one or more tax rates from the dropdown. All rates you have created in Payment Settings appear here. You can link multiple tax rates to a single product — the system will calculate and apply all of them.
Multiple taxes on one product
The HoopAI Platform supports applying multiple tax rates to a single product simultaneously. This is useful when you operate in jurisdictions with layered taxation — for example, a state tax rate plus a county tax rate. To apply multiple taxes:- In the product editor, after toggling on Charge Tax on This Product, use the tax rate dropdown to select each applicable rate.
- Each rate you select is added as a separate tax line.
- On the customer-facing invoice, each tax rate is displayed as its own line item in the tax breakdown, making the total transparent.
International and automatic taxes (VAT/GST)
For businesses selling to customers in multiple countries or states, the HoopAI Platform supports configuring nexus-based automatic tax rates.Access automatic tax settings
Go to Payments → Payment Settings → Taxes and find the Automatic Taxes or International Tax section.
Configure nexus addresses
A nexus is a location where you have a tax obligation. Add each country or state where your business has nexus by entering the corresponding address. This tells the platform where to apply tax automatically.
Enter your Tax ID
Enter your VAT registration number, GST number, or equivalent tax ID for each jurisdiction. This number appears on invoices sent to customers in that region, satisfying local invoice compliance requirements.
Automatic VAT/GST configuration requires your business to manage its own nexus determination. The platform applies the rates you configure but does not independently determine where you have a legal tax obligation. Consult a tax advisor for compliance guidance specific to your jurisdiction.
Tax display on invoices
When taxes are applied, the invoice presents them clearly to both you and the customer:- Line-item level: Each product line shows the applicable tax rate name next to the item price.
- Tax breakdown section: A dedicated section below the subtotal lists each tax rate by name, percentage, and calculated amount.
- Tax ID display: If a Tax ID is configured for a rate, it appears in the tax breakdown section — a common requirement for VAT invoices in the EU.
- Order Summary: The cumulative tax total is shown in the Order Summary at the bottom. Hovering over this total displays a tooltip with the full breakdown.
Deleting a tax rate
To delete a tax rate:- Go to Payments → Payment Settings → Taxes.
- Find the rate you want to remove.
- Click the three-dot menu next to the rate and select Delete.
- Confirm the deletion in the dialog.
Point-of-Sale (POS) taxes
Taxes in the HoopAI Platform mobile app (POS) work as follows:- Tax rates must be created first in the web application under Payments → Payment Settings → Taxes.
- Once created, tax rates can be linked to products in the product editor in the web app.
- When those products are sold through the POS app, the configured tax rates are applied automatically.
You cannot create new tax rates directly in the mobile POS app. All tax rate creation and management is handled in the web application.
Frequently asked questions
Is tax required on every invoice?
Is tax required on every invoice?
No. Tax is entirely optional on invoices. If you do not add a tax rate, no tax is charged. You can apply tax on a per-invoice basis or rely on product-level tax settings to apply it automatically.
Can I apply different tax rates to different products on the same invoice?
Can I apply different tax rates to different products on the same invoice?
Yes. Use the Per item tax method in the invoice editor to assign a different tax rate to each line item individually. This is useful when different products have different tax classifications — for example, if some items are taxable and others are exempt.
What is the difference between tax-inclusive and tax-exclusive pricing?
What is the difference between tax-inclusive and tax-exclusive pricing?
With tax-exclusive pricing (the default), the price shown to the customer does not include tax — tax is calculated and added on top at checkout. For example, a 110 at checkout.With tax-inclusive pricing, the price shown already includes the tax. The system extracts the tax component from the listed price. The same 90.91 and the tax is $9.09.
How do I handle international VAT for EU customers?
How do I handle international VAT for EU customers?
Configure a VAT tax rate in Payments → Payment Settings → Taxes, enter your VAT registration number in the Tax ID field, and set the applicable rate for the EU jurisdiction. Add your EU nexus address in the Automatic Taxes section. When invoices are sent to EU customers, the VAT rate is applied and your VAT number appears on the invoice as required by EU law.
Can I set up automatic tax calculation for US sales tax?
Can I set up automatic tax calculation for US sales tax?
Yes. Use the Automatic Taxes feature to configure nexus addresses for each US state where you have a tax obligation. Once configured, the appropriate rate is applied automatically based on the customer’s location. Note that US sales tax rates vary by state, county, and municipality — ensure your configured rates reflect the correct combined rate for each nexus location.
What happens if I change a tax rate — do past invoices update?
What happens if I change a tax rate — do past invoices update?
No. Changing the percentage on an existing tax rate does not retroactively update any invoices that have already been sent or paid. Only invoices created after the change are affected. If you need to correct a past invoice, you would need to void and reissue it.
Is VAT and GST supported?
Is VAT and GST supported?
Yes. You can create tax rates with any name — including VAT, GST, HST, or any jurisdiction-specific label. The platform does not restrict tax rate names, so you can configure it to match your local requirements.
Can I show my tax registration number on invoices?
Can I show my tax registration number on invoices?
Yes. When creating or editing a tax rate, enter your registration number in the Tax ID field. This number will appear in the tax breakdown section of every invoice where that rate is applied. This satisfies the invoicing requirements of many jurisdictions, including EU VAT rules that require the seller’s VAT number to appear on B2B invoices.