Taxation
Tax configuration determines how Floatless calculates and displays tax on invoices.
Tax rules depend on customer location, product category, customer exemption status, and your business tax obligations. Confirm production tax policy with your finance or tax advisor before launch.
Tax inputs
| Input | Why it matters |
|---|---|
| Customer billing address | Determines jurisdiction. |
| Product tax category | Determines whether and how an item is taxable. |
| Tax rate configuration | Defines rates for country, state, province, or local jurisdiction. |
| Customer tax exemption | Removes or changes tax treatment for exempt customers. |
| Business tax ID | Appears on invoice documents when required. |
Customer tax settings
Customer records should include:
- Country.
- State or province.
- Postal code.
- Tax ID where applicable.
- Tax-exempt flag where applicable.
- Exemption notes or certificate reference if required by your process.
Product tax settings
Products should have tax categories that match what you sell:
- SaaS or digital service.
- Professional service.
- Physical good.
- Support or implementation.
- Usage-based digital consumption.
Invoice review
Before production billing, generate a test invoice for each major tax scenario:
| Scenario | What to verify |
|---|---|
| Same jurisdiction | Expected local tax is applied. |
| Different state or province | Correct destination tax behavior. |
| Tax-exempt customer | No tax or correct exemption treatment. |
| Mixed products | Each line receives appropriate tax treatment. |
| Discounted invoice | Tax base matches your policy. |
Troubleshooting
| Symptom | Check |
|---|---|
| No tax applied | Customer address, product tax category, tax rate setup, and tax-exempt flag. |
| Wrong rate applied | Jurisdiction matching and overlapping tax rules. |
| Tax applied to exempt customer | Customer exemption flag and exemption effective date. |
| Invoice tax differs from finance expectation | Whether discounts apply before tax and whether product category is correct. |