> ## Documentation Index
> Fetch the complete documentation index at: https://staging-docs.crosspoint.finance/llms.txt
> Use this file to discover all available pages before exploring further.

# Tax Inclusive Pricing

> Control whether your product prices include or exclude tax at checkout

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.

## Tax Behavior Options

There are three options available:

| Option | Description |
| - | - |
| **Location-based** | Crosspoint automatically picks the right behavior based on the customer's country. This is the default. |
| **Inclusive** | The price shown to the customer already includes tax. Tax is extracted from the total at checkout. |
| **Exclusive** | The price shown to the customer is before tax. Tax is calculated and added on top at checkout. |

> [!NOTE]
>
> **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.

### 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.

## 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.

![](https://mintcdn.com/crosspoint/UQs51vKfpD2N4tlw/assets/features/tax-inclusive-pricing/settings.light.png?fit=max\&auto=format\&n=UQs51vKfpD2N4tlw\&q=85\&s=5fd31bc53a1f6b19ca587b8f2b0576be)

## 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:

| Countries | Behavior |
| - | - |
| United States, Canada, India | **Exclusive** — tax is added on top of the listed price |
| All other countries | **Inclusive** — tax is already included in the listed price |

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.

## 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.

> [!NOTE]
>
> 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.


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