How to Add and Manage Taxes in Sparkforge Payments

Sparkforge Payments includes tax settings that let you define multiple rates and apply them to products, invoices, and checkout flows. For SaaS agencies billing recurring subscriptions, Stripe Tax Management provides regional tax compliance until native SaaS tax handling lands.

Create a tax rate

1. Navigate to Payments > Settings > Taxes.
2. Click Add Tax or Create Tax.
3. Fill in tax name, rate, optional description, tax ID, and tax agency.
4. Click Add. The tax appears in your tax list.

Apply tax to products

While creating or editing a product, check Attach Tax Rates to see your tax list. Pick one or more rates, or click + to add a new rate inline. These taxes auto-apply whenever the product is added to checkout — except invoices, which need explicit tax addition.

Apply tax to invoices

1. Open Payments > Invoices.
2. Create or edit an invoice and click Add Tax next to a product.
3. Check the tax(es) you want to apply.
4. Click Save. The invoice recalculates with tax included.

Manual taxes vs auto taxes

Manual tax rates act as a fallback when auto taxes are also enabled. To use only manual rates in specific jurisdictions, either disable auto taxes entirely or remove that jurisdiction from your nexus addresses.

Example: To use auto taxes for every US state except Texas, remove Texas from the nexus list under automatic tax settings. Manual rates take over for Texas while auto taxes continue elsewhere.

Delete a tax rate

Click the delete icon next to the tax rate in your tax list. Existing invoices that already applied the rate keep their applied amount.

Tax rate precision

Sparkforge stores and displays tax rates to 4 decimal places (for example, 7.1250%) for accuracy on fractional rates. Tax amounts still round to 2 decimal places per currency standards. Four-decimal precision shows in invoices, estimates, subscriptions, transaction details, receipts, checkout, CSV exports, and supported API responses.

Stripe Tax Management for SaaS direct payment links

SaaS agencies running recurring subscriptions can use Stripe Tax Management until Sparkforge ships native SaaS tax handling. This works only for SaaS direct payment links.

1. Configure tax rates in Stripe

1. Log into Stripe.
2. Go to Products > Tax Rates and click New.
3. Fill in tax name, rate, and inclusive vs exclusive (inclusive = agency absorbs tax; exclusive = customer pays on top).
4. Click Add Tax Rate.

2. Apply tax to existing customers

1. Open Customers in Stripe and select the subscriber.
2. Click Edit Subscription.
3. Under Add Tax, select your tax rate.
4. Save.

3. Apply tax to new customers

Once Stripe Tax Management is active on your account, attach the tax rate to your SaaS product's payment link. Define tax behavior on each price (inclusive or exclusive) and share the SaaS direct sale link with prospects.

Tax rules vary by region. Confirm your specific obligations with a tax advisor or accountant. This article is informational, not legal or tax advice.