Tax Inclusive Pricing

Recurly’s tax inclusive pricing feature allows you to set your prices inclusive of any taxes that your customers may have. You can set prices inclusive or exclusive of taxes on Recurly subscriptions, items, set up fees, and add-ons. Tax inclusive pricing works on Recurly's out-of-box tax solution as well as Recurly's Avatax and Vertex direct integration solutions.

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Tax Inclusive Pricing cannot be disabled once it is enabled.

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This feature will allow you to configure your plans as usual and then set tax inclusivity at subscription creation via the UI and API. For example, let’s say you create a plan called “Gold” at $10.00. You subscribe one customer, Customer X, to the plan selecting the “price includes tax” option, and subscribe another customer, Customer Y, to the plan selecting the “price does not include tax” option - both customers will have a tax rate of 10.025%. Customer X will end up paying just $10.00. Customer Y will end up paying $10.00 + $1.02 of tax.

When subscribing a customer, the setup fee and whatever add-ons you create will inherit the tax status selected. Please see below screenshots for more information.

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Tax inclusive subscription invoice with add-on and setup fee.

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Tax exclusive subscription invoice with add-on and setup fee.

Additionally, any items created by themselves, outside of the plan page, will inherit the tax inclusive status of that subscription

You are also able to create a one time purchase inclusive of tax. Simply add a charge to an account and select the “price includes tax” option.

Please note, you are unable to change the inclusivity status of a subscription once it has been created.

Discounts

See below to see how discounts are applied to purchases that are inclusive of taxes:
Percentage Discount
Tax inclusive price: $300.00
Tax rate: 10.025%
Discount amount: 20%
Price after discount: $240.00
Tax service returns: $217.69 subtotal + $22.32 tax

Fixed Amount Discount
Tax inclusive price: $300.00
Tax rate: 10.025 %
Discount amount: $60.00
Price after discount: $240.00
Tax service returns: $217.69 subtotal + $22.32 tax

Recurly.js

To accurately reflect tax estimates on Recurly.js, use the following flow:

  1. Create a token in Recurly.js without setting a tax inclusive flag.
  2. Use API V2/V3 to create a purchase or subscription using the token created above in billing_info.token_id and tax_inclusive flag.
  3. Use the preview route to show your subscriber the estimated taxes before submitting the purchase.