Airwallex Tax overview

Automatically calculate and apply the correct indirect tax on your Airwallex Billing invoices, subscriptions, and checkout flows.

Copy for LLMView as Markdown

Airwallex Tax helps you automatically calculate and apply the correct indirect tax—such as sales tax, VAT, or GST—on your Billing invoices, subscriptions, and checkout payments.

Airwallex Tax is a tool to help you automate indirect tax calculation on Billing transactions. It does not replace a qualified tax advisor. The information in this documentation is general in nature and may not reflect all rules in every jurisdiction or the specifics of your business. You remain responsible for deciding where you have tax obligations, configuring your settings correctly, reviewing outputs, and preparing, filing, and paying your tax returns on time. Airwallex does not provide tax, legal, or accounting advice. Obtain independent advice from your own tax and legal advisors before relying on any particular tax treatment.

Automatic Tax Calculation

Airwallex Tax currently provides one key feature: Automatic Tax Calculation.

Automatic Tax Calculation uses your configuration to determine the correct tax to apply on each billing transaction. Based on your setup, it:

Uses your tax registrations to understand where you have tax obligations.
Uses product tax categories to understand how each product should be taxed.
Uses your billing address and your customers' billing addresses to determine which jurisdiction's rules apply.
Calculates tax per line item and includes it on invoices, subscriptions, and Hosted Billing Checkout flows.
Provides exportable tax reports to support your filing and audit workflows.

When to use Automatic Tax Calculation

Automatic Tax Calculation is designed for merchants who:

Sell into multiple regions, for example US, EU, UK, AU, or CA.
Need to handle indirect tax calculation such as:
- Sales tax (for example, US states and local jurisdictions).
- Value-added tax (VAT) (for example, EU and UK).
- Goods and services tax (GST) (for example, AU, NZ, and CA).
Want Airwallex Billing to calculate tax automatically based on product and customer data.
Need transaction-level tax exports for filing or handing off to their accounting team.

What Automatic Tax Calculation does and doesn't do

Automatic Tax Calculation does:

Calculate and apply tax on invoices, subscriptions, and Hosted Billing Checkout payments.
Use your tax registrations, product tax categories, and customer locations to determine the correct tax treatment.
Produce transaction-level CSV exports that include jurisdictions, taxable amounts, tax amounts, and filing currency details.

Automatic Tax Calculation does not:

Determine where you are legally required to register for tax (nexus determination). It relies on the information you provide in tax registrations, product tax categories, and customer location fields.
Automatically register you with tax authorities or file returns on your behalf.
Replace your accounting system or tax advisor.
Calculate tax for services outside the supported product tax categories.
Provide e-invoicing, e-reporting, or VAT number verification services.

Automatic Tax Calculation is one part of your broader tax compliance chain. You still need to decide where to register, monitor thresholds, and ensure returns are filed correctly.

Key concepts

Enable global tax automation: A toggle in Billing Settings → Tax. When enabled, Billing attempts to calculate tax automatically for all new invoices, subscriptions, and eligible checkout flows.
Tax inclusion (price behavior): Controls whether your prices are tax inclusive (price already includes tax) or tax exclusive (tax is added on top of the price).
Tax registrations (nexus): A list of countries, states, or provinces where you're registered to collect tax. Automatic Tax Calculation uses this list to decide where to charge tax and which transactions to include in tax reports.
Product tax categories: Standardized categories that describe what you're selling, for example SaaS – Business or Digital Video – Subscription. These categories map to the underlying tax rules in each jurisdiction.
Customer location and status: The customer's billing address and, in some cases, tax IDs, used to determine the applicable jurisdiction and any special rules such as reverse charge.

Supported regions

Automatic Tax Calculation supports indirect tax (sales tax, VAT, and GST) in a growing list of countries and sub-national jurisdictions across North America, Europe, Asia-Pacific, and other markets. Support may vary by country, state or province, product type, and customer location.

For the full list of supported regions, see Supported regions.

Next steps

Was this page helpful?