The % Tax system works fine, we understood how to link Hubspot et Stripe for recurring payments quotes. However on a recurring quote, the VAT line gets lost because it is not comprised in the "Recurring sub-total", hence bad bad issues when integrating with Stripe. Can we do something to cope?
@CPetre apologies for the frustration this has caused you and other customers! I want to make sure that everyone in this thread is aware of the line-item tax support and tax rate library that was added last summer (June 2024). With this capability, tax can be added on a per-product basis which, for products set with a recurring billing frequency, ensures the tax amount is charged as well. With the Tax Rate library, you can save different VAT rates and then apply those to certain items, or leave them blank if it's tax exempt.
I do want to acknowledge that we know there are other related asks that we haven't yet solved, and those include:
Automated US Tax --> while this particular idea is US focused, a similar case could be made for automatic calculation of VAT based on country
If the line-item tax option isn't feasible for your use case, and neither of the above ideas would help -- I'd encourage you to please log a new idea that calls out the specific need you have. Hope this helps and please feel free to DM me if you'd like to set up time to discuss tax further!
I'm trilaing the quoting functionality with a view to subscribe to Hubspot and so far I've sent out two quotes (with payment schedules) and both clients have said "I don't understand what you're quoting".
The "Add discount, fees or tax" item only works for "At Payment" items (and you have to have at least one "At Payment" item to use it - Arrrgh!) and I can't quote the VAT on the payment schedule. As a SaaS provider that offers muti-year contracts with specific license start dates, being able to set out a fully-formed payment schedule at the offset is a key requirement.
The "Add an additional line item in the quote for VAT and future-date it" workaround does work, but it's very 1980's and it's exactly the reason I want to find a better quoting tool than sage (which has a different problem in that you must calculate discount ££ instenad of percent and they are stored that way meaning if you change the quote you have to change every line item in the quote - time waster).
When I was a developer for an account software company, I implemented this feature in an on-prem, multi-currency, multi-national, accounting package (back in 2001) and it allowed for multiple tax types (by country) as well as per-line tax emptions on products and deals/quotes/sales orders/invoices; it wasn't a hard feature to implement (it took me about 3d plus QA).
Another gap is that there is no "Subtotal" for a given future payment term either (requiring customers to manually calculate the total of the line items on that payment date) - which is a terrible UX for our customers.
The changes are pretty simple and I describe them using example table names and api endpoints. Obviously these would probably change for Hubspot's API and DB schema standards...
Note: I'm assuming people won't want to manage taxes on "deals" because deals are a forcasting tool and if
When adding a Currency, add a button that allows users to define the "taxes" for that currency
table: currency_taxes (or whatever) which has properties "name" and "percent" (migration: 1hr)
API endpoint: /settings/currency/{id}/taxes/{:id?} (CRUD)
UI component: manage currency taxes (1d)
On the product page allow users to manage tax emptions
UI edit component to add/remove records; (ideally generalize to allow management of "product_line_tax_exemptions", plus tables from 3.1 and 3.3, below) by showing the currency and tax name (and, optionally the percent)
API endpoint to manage "product_currency_tax_exemptions"
UI view component that displays "x applicable tax exemptions" for the products screens
Create tables for quotes/invoices:
quote_line_tax_emptions (or whatever)
api endpiont to manage "quote_line_tax_emptions"
invoice_line_tax_exmptions (or whatever)
Update quote/invoice screen line items to:
edit tax exmptoins for line items (using general purpose UI component, above from )
[OPTIONAL] Put an '*' or other display item to denote that the item has a tax exemption
Update invoices/quotes "Future Payment Schedule" to display...:
Subototal for future payment date/group (if there is > line item)
Show tax amount for future payment date
Udpate invoices/quotes such that, when TCV is displayed, also show
TCV subtotal
TCV tax amount
[OPTIONAL]: Auto-update tax-emptions on un-published/not-locked quotes/invoices, for each line item. Note: I don't agree with doing this but you could add a "product_exemptions_changed_date" and "product_exemptions_accepted_date" field to a quote/invoice that gets updated every time a product has new tax exemptions applied to be able to display warnings to users to acknowledge that tax exemptions have changed and have, as a result, the quote has been automatically updated or needs to be reviewed/updated.
Again, this isn't a difficult feature to implement and it would actually make the future payment feature usable (because right now, I haven't figured out how to structure a quote without having to have a followup call with a prospect to explain payment schedules and to hand-crank a future date payment by adding up the line items.
@jperro@VictoriaGumaer@JackCoopersmith Hello everyone, I've tagged you on this critical feature request as nobody from the product team has taken into consideration this crucial customer need in more than 5 years. Please review this, and provide us with a solution asap!!!
@CPetre apologies for the frustration this has caused you and other customers! I want to make sure that everyone in this thread is aware of the line-item tax support and tax rate library that was added last summer (June 2024). With this capability, tax can be added on a per-product basis which, for products set with a recurring billing frequency, ensures the tax amount is charged as well. With the Tax Rate library, you can save different VAT rates and then apply those to certain items, or leave them blank if it's tax exempt.
I do want to acknowledge that we know there are other related asks that we haven't yet solved, and those include:
Automated US Tax --> while this particular idea is US focused, a similar case could be made for automatic calculation of VAT based on country
If the line-item tax option isn't feasible for your use case, and neither of the above ideas would help -- I'd encourage you to please log a new idea that calls out the specific need you have. Hope this helps and please feel free to DM me if you'd like to set up time to discuss tax further!
