Tax

In Zenskar, tax is a configurable feature that allows businesses to manage how tax is calculated and applied to products within contracts or plans. This is essential for ensuring compliance with local and international tax regulations during invoicing.

Zenskar supports two tax modes: manual tax and Avalara integration.

🧾 Manual tax

Manual tax is a straightforward option where a tax percentage is defined and applied to individual products. This method is suitable for businesses operating in regions with simple or static tax rules.

Key aspects:

You define the tax percentage directly in the product or plan configuration.
Tax is applied uniformly, regardless of customer location.
Fixed tax amounts are not supported.
Best suited for businesses with predictable, low-complexity tax needs.

🌐 Avalara integration

For businesses needing automated, location-based tax handling, Zenskar integrates with Avalara, a leading tax compliance service. With Avalara, tax is calculated dynamically based on the buyer's and seller's addresses, applicable jurisdictions, and up-to-date tax laws.

Key aspects:

Tax codes can be assigned to products.
Avalara calculates tax in real time during invoice generation.
Supports complex tax scenarios, exemptions, and cross-border compliance.

✅ Summary

Mode	Description	Best for
Manual tax	Define a tax percentage manually during configuration	Simple or fixed-percentage tax setups
Avalara	Real-time tax calculation via integration with Avalara’s tax engine	Complex, location-based, or dynamic tax rules

Zenskar gives you the flexibility to choose the tax method that best fits your business model and compliance requirements.