Which tax rate do I have to apply?
Tax rates are based on your registered tax jurisdictions, the type of product or service you're selling, and your customer’s location. Thanks to Quaderno’s product settings and tax database, the app will automatically apply the correct tax rate for you.
Here are the general rules for tax calculation depending on the type of product being sold:
- For sales of physical goods, Quaderno calculates tax based on where a product is shipped from and where it is shipped to.
- For sales of services, it depends on its type:
- For
e-Services
,e-Books
, andSaaS
sales, Quaderno applies tax rates based on your customer's location. - For
Consulting
services, Quaderno applies the local tax rate when the customer is located in one of your registered jurisdictions. - For the rest of the services (
Standard
,Reduced
), Quaderno applies your local tax rate on all sales worldwide.
- For
These services are classified based on their tax code. To learn more about the available tax codes and how to set your account's default tax code, check this article.
Some tax jurisdictions will require you to collect taxes from your first sale, while others won't. That's why you might get a zero tax rate from some sales: they're just being added toward that jurisdiction's tax registration threshold.