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Firmhouse allows you to create as many tax rates or tax categories as you need. You can then apply tax rates to each of your products, plans, and have a project-wide default. After creating a new project, Firmhouse automatically creates a default multi-country tax rate for you with a few European countries already configured. Be sure to review this tax rate and adjust it to your needs before going live.
Note for Shopify Checkout users: When using Shopify Checkout, Firmhouse relies on the Shopify tax calculation system for determining the correct tax percentage and calculation on any order generated. Shopify is in the lead for tax calculations in this scenario.

Getting Started with Tax Rates

Navigate to Settings > Taxes & Invoices from the sidebar to view and manage your tax rates. This is where you can create new tax rates or edit existing ones.

Tax Rate Types

When creating a new tax rate, you have three options to choose from: Static: Allows you to set a fixed tax rate. This rate is always the same every time it is applied and will not change depending on the customer’s location or shipping country. Dynamic: Calculates tax based on the customer’s country. This allows you to specify different tax percentages for different countries, with a default rate for countries not explicitly configured. Exempt: No tax will be added. Use this instead of creating a 0% tax record when no tax needs to be calculated.

Tax Rate Settings

For each tax rate, you can also configure: Inclusive vs Exclusive: Choose whether the price you configure on your products and plans is inclusive or exclusive of tax. Inclusive is typically used for consumer sales, while exclusive is common for B2B sales. B2B Origin Country: Optionally select an origin country for B2B scenarios. The tax rate will only be applied when the customer’s shipping country matches the selected origin country; all other countries will be taxed at 0% (reverse VAT). For more detailed information on managing tax rates, including how to configure tax rates for plans and products, see Managing Tax Rates.