Setting up Tax Rules
In order to charge tax, you must first enable Tax charges in WHMCS. To do
this, go to Configuration > Tax Setup and then tick the checkbox at the top
of the page labelled Tax Enabled and click Save Changes. Tax is now enabled in
WHMCS. Now, you can proceed to setup your tax zones. This is done as follows:
- Click the Add New Tax Rule tab on the Tax Setup page
- In the Name field, enter a name for the tax zone which allows you to
identify it
- Next, for the Country, choose where this tax rate applies to all countries
or whether it only applies to a selected country
- For the state, again you can choose whether it applies to all states in the
selected country or only a selected state
- Finally, enter the tax rate as a percentage, for example 17.5 and then click
the Save Changes button
For example, if you were a UK business you would setup the system to charge
VAT. In the country field, you would choose "United Kingdom" and for the state
you would leave it set at "Apply Rule to All States". You would then enter the
tax rate of "17.50" and click the Save Changes button. You can setup an
unlimited number of tax rules.
Setting Taxed Items
The flexible tax system in WHMCS allows you to set individually which items
apply for tax. By default in WHMCS, a product is set to not be taxed. What this
means is that even though you have tax rules setup, no tax would be charged for
it. So for example you might charge tax on the products you offer but not on
services.
Setting a Product/Service as Taxable
- Go to Configuration > Products/Services
- Click the edit icon next to the product you wish to set to be taxable
- Select the "Other" tab at the top of the screen
- Tick the checkbox next to the item labelled "Tax Product"
- Save your changes to the product
Setting Domains as Taxable
You can set if tax should be applied to domains in Configuration > Tax
Setup - there is a tick box at the top of the page for this.
Setting Late Fees as Taxable
You can set if late fees on invoices should be taxed also in Configuration
> Tax Setup.
Showing your Tax ID/VAT Number on Invoices
When charging your customers tax, it is often a requirement for you to
display your companies Tax or VAT Number on all invoices. To do this in WHMCS,
simply add a line to the bottom of your company address in the General Settings
page containing the number - eg. VAT Number XXXXXXXX
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