Taxes & compliance
Leverage the capabilities of Avalara and Vertex to accurately calculate and collect taxes on all your subscription plans worldwide.
Save valuable time and increase product focus by optimizing tax compliance, calculation, and collection
Built in compliance
Stay on the right side of compliance—effortlessly—with the Vertex and Avalara subscription sales tax engine within the Recurly platform.
Calculate accurate tax rates
Recurly delivers sales tax decisions and automatically assigns taxability rules to provide the right tax rate calculation using subscriber location.
Bill and collect taxes globally
You can define taxable regions and configure your plans—and one-time charges—to collect or exempt taxes worldwide.
Accurate tax calculations—here, there, and everywhere
Scale your subscription brand globally, with the comprehensive subscription sales tax engine that helps ensure accuracy and compliance.
- Configure taxable regions at the country and state/province level
- Tax based on the billing or physical address is automatically validated for accurate collection
- Connect with Avalara Avatax, Avalara for Communications, and Vertex for expanded functionality
Set up customer addresses and exemption
By default, Recurly will tax based on the subscriber’s “bill to” address on the invoice. However, you can tax based on the customer’s physical location or exempt them from tax.
Enabling taxable regions
Configure your product taxability and any customer exemptions. After enabling a region, any taxable products and customers will generate tax invoices.
Configuring taxable plans and charges
Once you enable a taxable region, you can configure new and existing plans—and one-time charges—to collect or exempt taxes.
Invoicing taxes
Invoices with tax include the tax rate subtotal for each line item; the total, including the subtotal plus tax; and an invoice-level total tax with the tax region, rate, and tax amount for the invoice.
Tax exports
Gain tax reporting at the line item level—breaking down state, county, local, and special tax rates and amounts calculated through Recurly.
Not having to worry about managing subscription billing because Recurly handles that for us has been huge. It has enabled us to focus on the elements that are core to our business—the customer experience and the box.
Read case studyFrequently asked questions
How do tax and compliance requirements impact subscription businesses?
There are currently more than 12,000 taxing jurisdictions in the U.S. alone. Subscription companies may be required to collect and remit taxes depending upon numerous factors, including the location of the sale and the nature of the product sold.
What is meant by tax and compliance requirements when referring to the subscription industry?
When Recurly speaks about tax and compliance requirements, we’re typically referring to federal, state, and local taxes in the U.S. and VAT/GST in Europe and other countries.
How can our business ensure we get tax and compliance requirements right?
Partnering with Recurly can ensure you assess and collect the appropriate taxes on every transaction.
How does Recurly handle tax and compliance requirements?
Recurly partners with tax leaders Avalara and Vertex to help ensure our merchants assess and collect taxes correctly.
What if some of my items are taxable and some are not?
On Recurly, you are in control of determining which of your products and services are subject to sales tax.
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