Tax codes classify goods and services for tax purposes. Konnect Metering & Billing uses them to pass structured tax information to payment providers so that tax is calculated correctly on invoices.
Tax codes
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Incompatible with
on-prem
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What is a tax code?
A tax code is a named, reusable object in your organization that maps a product category to provider-specific identifiers. Each tax code has:
- A human-readable key and name (for example, key:
saas_software, name:SaaS Software). - An optional description.
- One or more app mappings, which are the provider-specific code strings for each connected payment app.
If you’ve integrated Stripe with Metering & Billing, app mapping values follow Stripe’s tax code format: txcd_XXXXXXXX (for example, txcd_10000000).
You can browse available codes in the Stripe Tax Code reference.
Note: Metering & Billing pre-provisions the most commonly used Stripe tax codes for every organization. These system-managed codes are read-only and can’t be edited or deleted. You can set a system-managed code as the organization default.
Tax behavior
Every taxable object carries a tax behavior that controls how the listed price is interpreted:
|
Value |
Meaning |
|---|---|
exclusive
|
Tax is added on top of the stated price. |
inclusive
|
Tax is included in the stated price. |
empty
|
Falls back to the provider’s default behavior. |
Default organization tax codes
Default organization tax codes act as a safety net, guaranteeing that every taxable item has a tax code even when there’s no specific setting configured. Tax code defaults are defined once per organization and apply across all billing profiles, customers, plans, and invoices.
Metering & Billing sets two defaults when your organization is created:
|
Default |
Applies to |
Used when |
Name |
Value |
|---|---|---|---|---|
| Invoicing default | Flat-fee charges and usage-based charges | The charge doesn’t have a tax code from a more specific layer. | Provider default | No app mappings. Falls back to the provider’s default behavior. |
| Credit grant default | Credit purchase charges (credit grants) | The credit purchase has no explicit tax code. | Nontaxable |
Stripe: txcd_00000000
|
To view your default and user-created tax codes, navigate to Metering & Billing > Settings and click the Tax Codes tab.
To apply tax codes other than the default, navigate to the rate card on any plan, add-on, or customer subscription, and expand the advanced settings for the pricing model. For a complete tutorial, see Create and apply Metering & Billing tax codes.
Fallback chain
Metering & Billing uses a fallback chain to determine which tax code to apply, in the following order of priority:
- Rate card tax code: Set on the rate card or add-on.
- Organization default: The invoicing or credit grant default for the org.
- Provider default: Used when the tax code has no app mappings.