Recurly

Taxes

Taxes relate to charges (subscriptions and one-time charges) and are applied to the invoice for payments. When setting up a site, you can configure collection of taxes as either US Sales Tax or VAT. The tax will be calculated for the applicable combination of charges, plans and accounts. Invoices, exports, emails and push notifications will indicate the tax amounts included from your transactions.

US Sales Tax

Sales tax for subscription plans is supported by Recurly for US merchants. Recurly applies state, county, local and special tax rates when your subscriber is in a state that you’ve identified to collect tax in your tax settings.

Available Features

The current release of the US Sales Tax feature allows merchants to collect taxes in US tax regions on their new and existing subscription plans. The summary of features includes:

Future features include:

Configure US Sales Tax on your Account

US Sales Tax is available on all Recurly accounts where country is set to United States under Site Settings. To enable US Sales Tax for your site, follow the steps below.

  1. Select the Taxes section in the left-hand navigation.
  2. Click the Enable US Sales Tax button and agree to the terms.
  3. Select the regions to collect sales tax and click Save Changes.
  4. US Sales Tax will now be applied to new and existing invoices whose billing address is in the selected regions.

Taxes Configuration

US Sales Tax Scenarios

Invoices and Exports

Invoices have been updated to support the display of US Sales Tax along with other enhancements to improve the readability of the format. US Sales Tax is calculated for the charges on an invoice, including proration adjustments for upgrade and downgrades. You can view your invoice by going to the Invoices page. For general information about invoices, view the invoices reference page.

Invoice Sample

Exports will also provide US Sales Tax data. The transactions export will include the total tax amount applied to each transaction and the invoices export will include the line item tax and total tax amounts. For details on the available data fields, view the exports reference page.

VAT (Value-added Tax)

VAT, or value-added tax, is supported by Recurly for European merchants. Recurly handles VAT percentages across different countries and different purchasing scenarios.

Configure VAT on your Account

VAT is available on all Recurly accounts that have set an EU country in their configuration page. If you have not done so already, set your company country under Site Settings. To enable VAT for your site, follow the steps below.

  1. Select the Taxes section in the left-hand navigation under Configuration.
  2. Click the Enable VAT button.
  3. Input VAT Number and VAT Percentage and click Save Changes.
  4. Select the Hosted Payments Pages section in the left-hand navigation under Configuration
  5. Check the Show VAT number field checkbox under Optional Fields and click Update Payment Page
  6. VAT will now be applied to new and existing invoices according to the scenarios below

VAT Scenarios

Validation

Recurly validates the VAT number for all production transactions against VIES. Please contact Recurly support if you’d like to disable VAT validation on your Recurly site.