# Setting tax rates

Source: https://docs.arcxp.com/en/products/subscriptions/managing-subscriptions-settings/setting-tax-rates.html

Use the Tax rates page in Subscription Settings to configure and manage tax requirements across different jurisdictions. You can define taxes in one of three ways:

- **Custom tax** \- define your own tax rates without an integration. This option provides flexibility for meeting diverse regional tax rules and requirements.
- **[Taxamo](https://integrate.taxamo.com/) integration** \- automate tax compliance for digital sales with Taxamo.
- **[Stripe Tax](https://docs.stripe.com/tax) integration** \- automate and streamline tax compliance for digital sales with Stripe Tax.

> **Note:**
> 
> Taxamo and Stripe Tax are third-party services that automate compliance for digital sales. Both require a separate subscription. These integrations simplify cross-border tax management by calculating and applying the correct rates automatically.

Arc XP uses your configuration to calculate and apply the appropriate taxes to subscription orders. If tax settings are not properly configured, you may be unable to charge and collect the required taxes for your digital subscriptions.

## Scenario: Defining a custom tax rate for a country

Your organization recently created a digital subscription intended for your Colombian audience.

To comply with Colombian tax requirements, you enter Subscriptions Settings and define a tax rate with Columbia as the country.

After completing this setting, Arc XP accurately calculates and adds taxes during checkout when Columbia is passed as the country.

## Procedure

## Setting tax rates

To set up tax rates, complete the following:

1. Navigate to **Subscriptions** \> **Settings** \> **Sales** \> **Tax rates**. The Tax rates page opens.
2. Select the tax rate to configure from the available options:

  - **Custom** \- configure tax rates for up to _eight_ countries and regions.
  - **Taxamo** \- automate tax compliance for digital sales using Taxamo integration.
  - **Stripe** \- configure streamlined tax compliance through Stripe.
3. Click **Select**.
4. Complete the configuration based on your selected tax rate setup.

  - For Custom tax:

    1. In the **Add tax rate** window, set the following:

      - **Country** \- choose from the drop-down menu.
      - **Tax rate** \- enter a percentage.
      - **Rate description** \- enter a short description.
    2. Click **Add**. The tax becomes available in the Custom tax rates list.
  - For Taxamo:

    1. Enter your Taxamo **Public token**.
    2. Enter your Taxamo **Private token**.
    3. Click **Save**.  
      For more details, see [Retrieving Access Tokens](https://developer.vertexinc.com/vertex-e-commerce/docs/retrieving-access-tokens) in the Taxamo documentation.
  - For Stripe Tax:

    1. Enter your **Secret key**.
    2. Enter your **Product code**.  
      For more details, see the [Set up Stripe Tax](https://docs.stripe.com/tax/set-up) guide.