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Tax behavior changes the number a buyer sees before checkout. It does not change the applicable tax rate, the amount Ruba must collect, or Ruba’s Merchant of Record responsibilities.

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Pick a presentation rule

Location-based behavior is the default and generally matches how buyers in each region expect prices to be presented.

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Compare the arithmetic

Assume the applicable tax rate is 20%:
  • With an inclusive price of 12.00,thebuyerpays12.00, the buyer pays 12.00. The total contains 10.00netrevenueand10.00 net revenue and 2.00 tax.
  • With an exclusive price of 10.00,checkoutadds10.00, checkout adds 2.00 tax and the buyer pays $12.00.
Checkout and the resulting receipt itemize tax in both cases.

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Set the organization default

Open the organization’s payment settings and select Location-based, Inclusive, or Exclusive under Default tax behavior. The choice applies to prices that do not define their own override and is saved automatically.

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What location-based means

Ruba resolves this option when the buyer supplies a billing address:
  • United States, Canada, and India use tax-exclusive display.
  • Every other supported country uses tax-inclusive display.
This resolution affects presentation only. As Merchant of Record, Ruba still calculates the jurisdictional tax, collects it, shows the breakdown, issues the receipt, and handles remittance regardless of which display rule you choose.
Changing tax behavior cannot reduce or increase the tax obligation. It only decides whether tax sits inside the advertised price or is added during checkout.