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When displaying a price to a customer, there are two common conventions: either the displayed price already includes tax (inclusive), or tax is calculated and added on top at checkout (exclusive). Crosspoint gives you fine-grained control over this behavior at both the organization level and on individual product prices.

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Tax Behavior Options

There are three options available:
Location-based is the recommended option for most businesses. It follows common regional conventions — customers in the United States, Canada, and India see exclusive pricing, while customers in the rest of the world (e.g. EU, UK) see inclusive pricing.

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How it affects checkout

  • Inclusive: If a product is priced at $12.00 and the tax rate is 20%, the customer pays $12.00 — $2.00 of which is tax and $10.00 is the net amount.
  • Exclusive: If a product is priced at $10.00 and the tax rate is 20%, the customer pays $12.00 — $10.00 net plus $2.00 tax added on top.
In both cases the tax amount is fully visible and itemized on the checkout page and on receipts.

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Setting the Default Tax Behavior

The default tax behavior applies to all products in your organization that don’t have a price-level override. To change it:
  1. Go to your organization’s settings.
  2. Find the Default tax behavior selector under the Payments section.
  3. Choose Location-based, Inclusive, or Exclusive.
  4. The setting is saved automatically.

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Location-based Behavior in Detail

When the tax behavior is set to Location-based, Crosspoint resolves the actual inclusive/exclusive behavior at checkout time based on the customer’s billing address: This follows prevailing regional conventions: North American and Indian consumers generally expect prices before tax, while European and most other international customers expect VAT-inclusive pricing.

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What tax behavior changes

Tax behavior only controls how the price is presented to your customer — it does not affect whether tax is charged or how much.
Changing the tax behavior on a price does not change the effective tax rate or your tax obligations. It only changes whether the stated price is presented as tax-included or tax-excluded to the customer.