Introduction

Taxes

Paygent supports percentage and fixed-amount taxes applied automatically when invoices are generated. Define tax rules once under Settings, attach them to orders, and every billing run calculates tax lines on the invoice subtotal.

Create a tax

Settings → Taxes → Create Tax

FieldDescription
NameDisplay name on invoices (e.g. “GST”, “VAT”, “Sales Tax”)
DescriptionOptional internal notes
Typepercentage or fixed
ValueRate or amount (e.g. 18 for 18%, or 5.00 for $5 fixed)
ActiveInactive taxes cannot be selected on new orders

Percentage tax

Applied to the invoice subtotal (all line items before tax):

tax_amount = subtotal × (value / 100)
total      = subtotal + tax_amount

Example: 18% GST on 1,000subtotal→1,000 subtotal → 180 tax → $1,180 total.

Fixed tax

A flat amount added once per invoice:

total = subtotal + value

Example: $5 processing fee on every invoice.

Attach taxes to an order

Taxes are selected when creating or editing an order:

  1. Orders → Create Order → Step 2 Order details
  2. Under Taxes, select one or more active tax rules
  3. Save and activate the order

You can also set customer tax defaults on the customer record — applicable taxes may pre-fill when the customer is selected.

Multiple taxes on one order are supported. Each tax generates a separate line on the invoice with name, type, rate, and computed amount.

How taxes appear on invoices

When the billing job generates an invoice:

  1. Line items are summed → subtotal
  2. Each attached tax is fetched and calculated
  3. Tax lines are appended with taxName, taxType, taxValue, and amount
  4. Total = subtotal + sum of tax amounts

Tax lines appear on the PDF and in the invoice editor. Unknown or inactive tax IDs on an order are skipped with a logged warning — the invoice still generates without that tax.

Edit taxes on unpaid invoices

Open an invoice → Edit Invoice:

  • Adjust tax lines manually if needed
  • Update customer GSTIN / tax ID, billing address, or place of supply
  • Modify line items — subtotal changes recalculate tax on regeneration

Paid invoices are locked. Verify tax lines before marking an invoice as paid. Paid invoices cannot be edited.

Taxes with credits and wallets

Taxes apply to the USD invoice subtotal, including:

  • Platform fees and seat fees
  • Activity/outcome usage charges
  • External cost line items
  • Postpaid wallet accruals (converted via conversion rate)

Credit wallet debits happen at usage time; taxes apply when the invoice is generated for monetary line items.

Example: Indian GST setup

  1. Settings → Taxes → create “GST 18%” — type percentage, value 18
  2. Customer record: billing address in India, GSTIN filled
  3. Order: select GST 18% on Step 2
  4. Invoice generates: subtotal + 18% GST line
  5. Send PDF to customer or mark paid to release prepaid credits

API and orders

When creating orders via API, pass taxIds as an array of tax document IDs. The billing service validates tax IDs belong to your organization.

See Orders API for order creation fields.

Checklist

  • ✓ Tax rules created and marked active
  • ✓ Taxes attached to order (or customer defaults configured)
  • ✓ Customer billing address and tax IDs complete
  • ✓ Order activated
  • ✓ Invoice shows expected tax lines before sending to customer

Related: Orders & Invoicing · Orders API