Taxes

Zoho Checkout lets you stay compliant with U.S. tax regulations across all your payment pages. Configure tax authorities, manage exemptions, and create tax groups to handle federal and state rules seamlessly.

Enable Sales Tax

In the United States, Sales Tax is a consumption tax imposed by state and local governments on the sale of specific goods and services. To enable sales tax in your Checkout organization:

• Go to Settings and select Taxes.
• Select ENABLE SALES TAX.
• In the pop-up, click Yes.

Sales tax will be enabled for your organization.

Tax Rates

You can create tax rates or tax groups and assign them to the payment pages you create. Here’s how:

Create Tax Rates

To create a new tax rate:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Click +New Tax.
• Enter the Tax Name, Rate(%) and Tax Authority.
• Click Save.

A new tax rate will be created.  

Create Tax Groups

You can create a tax group in Zoho Checkout by combining two or more tax rates. This allows you to associate multiple taxes with an item in your payment page. For example, in the U.S., customers may be subject to federal, state, and local taxes when purchasing taxable goods or services. To create a new tax group:

To create a tax group:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Click +New Tax Group.
• Enter the Tax Group Name and select the Associated Taxes
• Click Save.

A new tax group will be created.

Edit Tax Rate/Tax Group

Zoho Checkout allows users to edit tax rates and groups. Here’s how:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Hover over a tax rate or tax group and click the Edit icon.
• Make the necessary changes review and check the Terms and Conditions.
• Click Save.

A tax rate/tax group will be updated.

Mark as Default

While your first tax rate is set as the default for all payment pages, you can assign a different rate as your organization’s primary preference at any time. Here’s how:

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Hover over a tax rate or tax group and select Mark as Default.

This tax applies to all new payment pages by default. You can still associate a different rate during creation or when editing a page.

Delete Tax Rate/Tax Group

• Go to Settings and select Taxes.
• Navigate to the Tax Rates tab.
• Hover over a tax rate or tax group and click the Bin icon.

The tax rate/group will be deleted.

Tax Exemptions

Tax exemptions apply when customers are not required to pay sales tax due to the nature of the item or their status, such as for resale, non-profit organizations, or specific goods. These exemptions usually vary by state, and some counties or cities may have their own rules. To create a tax exemption:

• Go to Settings and select Taxes.
• Navigate to the Tax Exemptions section and click + New Exemption.
• Enter the Exemption Reason and Description.
• Click Save .

You will have added a tax exemption.

Tax Authorities

A tax authority is a government agency that enforces tax laws and collects taxes from people and businesses in its area. In Zoho Checkout, associating a tax authority with a specific tax rate helps you track and apply the correct taxes while creating transactions for customers and vendors. To create a new tax authority:

• Go to Settings and select Taxes.
• Navigate to the Tax Authorities section and click + New Tax Authority.
• Enter Name and Description.
• Click Save.

A new tax authority will be created.

Configuring Sales Tax for Items in your Payment Pages

You can configure sales tax for goods and services while creating or editing a payment page. Here’s how:

• Go to Payment Pages.

• Create a new payment page or click Edit next to an existing one.

• Navigate to Tax Information under Configure Page.

• Choose your tax preference:

• Taxable: The default tax rate configured in Taxes under Settings will be applied.

• Non-Taxable: Select this for tax-exempt items and choose a valid Exemption Reason.

• Click Save & Publish.

Now, the taxes configured will be applied to the payment page you’ve created.

Disable Sales Tax

• Go to Settings and select Taxes.
• Click Disable Sales Tax at the top of the page.
• In the pop-up that follows, click Yes to confirm.

Now, sales tax will be disabled for your organization.