---
title: "Connecting TaxCloud to Chargebee"
description: "Connect TaxCloud to your Chargebee account to calculate tax rates for your invoices, track your tax obligations, and simplify tax filing."
canonical_url: "https://support.taxcloud.com/articles/connecting-taxcloud-to-chargebee-0UmSb8mane"
md_url: "https://support.taxcloud.com/articles/connecting-taxcloud-to-chargebee-0UmSb8mane.md"
---
# Connecting TaxCloud to Chargebee

Connect TaxCloud to your Chargebee account to calculate tax rates for your invoices, track your tax obligations, and simplify tax filing.

## How the Integration Works

The TaxCloud integration with Chargebee provides:

* **Accurate, real-time tax calculation:** Automatically apply the correct tax rate to every invoice and credit note, for subscription renewals and one-time charges, based on up-to-date tax rules across jurisdictions.
* **Nexus tracking and compliance:** Monitor your sales across states and get alerts when you establish economic nexus, so you always know when it's time to register and collect.
* **Transaction coverage within Chargebee:** Handle address validation, tax calculations, and transaction capture within Chargebee, reducing manual effort and improving accuracy across every transaction.
* **Audit-ready reporting and filing:** Capture every taxable event, generate compliance-ready reports, and let our team handle your state sales tax filing for you.

### Invoices and Credit Notes

The integration provides tax calculations and reporting for invoices and credit notes.

* An **invoice** is created in Chargebee when a subscription or one-time charge is billed. This incurs a tax liability that TaxCloud tracks for you.
* A **credit note** is created when you issue a refund in Chargebee. This reduces your tax liability; TaxCloud also tracks this for you.

### Product Taxability

TaxCloud needs to know what your products are so that the tax engine can apply the correct rates. You do this by assigning [Taxability Information Codes](https://support.taxcloud.com/en-us/articles/taxcloud-taxability-information-codes-tic-U1KLuHTyNq) (TICs) to your Chargebee catalog. The TIC takes into account:

* Sales and use tax rates
* Product and Service exclusions
* Sales Tax Holidays

You can apply TICs in two ways:


1. Set TICs on your Chargebee Product Catalog items (plans, addons, and charges).
2. Set the default TIC for the Chargebee integration in TaxCloud. This TIC is used if no TIC is set for a a plan, addon, or charge.

### Customer Exemptions

Customer exemption status is set in Chargebee. When you mark a customer exempt, you must also [add an exemption certificate for that customer in TaxCloud](/articles/how-to-add-an-exemption-certificate-to-taxcloud-xfuUNu2Qnq) and reference the certificate ID in Chargebee.

 ![](https://support.taxcloud.com/api/attachments.redirect?id=115e00a6-021a-4579-ace4-275331a3d01a)

If you wish to add a certificate to TaxCloud at a later time, you can enter the text "Exempt" instead.

## Considerations

* TaxCloud currently provides sales tax calculations, reporting, and filing for the United States only.
* TaxCloud fully supports [Chargebee test environments](https://www.chargebee.com/docs/billing/2.0/getting-started/sites-intro). We recommend configuring the integration in your test environment before setting it up in production. To do so, set up a separate connection in TaxCloud for each Chargebee environment.

## Before You Begin

Complete these steps before you set up the integration.

### Verify Your Chargebee Organization Address

TaxCloud uses your business address to determine the correct tax for each invoice. The Organization Address you set up in Chargebee serves as the origin address for tax calculations through TaxCloud. To ensure accurate results, this address must include at least the **Country**, **State**, and **Postal Code**.

You can configure your Organization Address by navigating to **Settings > Configure Chargebee > Business Profile**.

### Determine which Taxability Information Codes You Need

A Taxability Information Code (TIC), is a code that tells the TaxCloud engine whether the items should be taxable or not depending on the destination address of the sale, allowing an item or a service sold to have accurate tax rates applied. The TIC takes into account:

* Sales and use tax rates
* Product and Service exclusions
* Sales Tax Holidays

Review the list of [TaxCloud Taxability Information Codes](/articles/taxcloud-taxability-information-codes-tic-U1KLuHTyNq) to determine which codes apply to your Chargebee Product Catalog.

### Complete TaxCloud Setup

Your TaxCloud account must be set up so that the integration works correctly.


1. Sign into [TaxCloud](https://app.taxcloud.com/).
2. [Complete your TaxCloud Business Profile](https://support.taxcloud.com/en-us/articles/video-how-to-complete-your-taxcloud-business-profile-GY9sSwsrGU).
3. [Set up your locations](https://support.taxcloud.com/en-us/articles/how-to-set-up-a-location-and-state-0WpiODyFaj).

## Step 1: Connect TaxCloud to Chargebee

In TaxCloud, set up the connection for Chargebee.


1. In TaxCloud, go to the **[Integrations](https://app.taxcloud.com/go/integrations)** page.
2. Click **Add Connection**, then select **Chargebee**.
3. In the top-right corner, click **Add.**

    ![](https://support.taxcloud.com/api/attachments.redirect?id=e65484fe-0072-4f12-9d35-018df71d4cad)

   Configure integration settings:

    ![](https://support.taxcloud.com/api/attachments.redirect?id=81dcb424-5bdd-4219-829e-6974bb0990e1)

   
   1. Set a **Name** for the integration.
   2. Set the **URL** for your Chargebee account.
   3. Set the default **Tax Information Code (TIC)**. [Read more about the TICs here.](/articles/taxcloud-taxability-information-codes-tic-U1KLuHTyNq)
4. Click **Finish Setup**.
5. Note the *Connection ID* — you'll need this in a later step.
6. If you're connecting your production Chargebee environment, click **Go Live** so that all transactions from Chargebee are processed for reporting and filing.


:::info
**Note**: If you're setting up a connection to your Chargebee test environment, skip this step. You do not want test invoices to be counted as real tax obligations.

:::

## Step 2: Connect Chargebee to TaxCloud

In Chargebee, add the TaxCloud tax provider. [TaxCloud](https://marketplace.chargebee.com/details/taxcloud) is now available in the Chargebee App Marketplace (Apps → Go to Marketplace). You can install it from there, or follow the steps below. 


1. Navigate to the **Apps** page.
2. In the Allowed Tax Providers list, click **TaxCloud**.

    ![](https://support.taxcloud.com/api/attachments.redirect?id=9fc65cb6-3134-4a1d-95d7-8c43968b3d02)
3. In the top-right corner, click **Get Started**.

    ![](https://support.taxcloud.com/api/attachments.redirect?id=7d14f5d1-8fe1-42b3-9842-6fd28ecc854e)

   
   1. Enter the TaxCloud **Connection ID** from Step 1.

       ![](https://support.taxcloud.com/api/attachments.redirect?id=30792c8b-f9e0-49e7-b0a9-487ab32fc4f2)

      5\. Verify your organization address in Chargebee, then click **Proceed**.

      On the Enable Address Validation step, enable both switches, then click **Proceed**.

      
      1.  ![](https://support.taxcloud.com/api/attachments.redirect?id=59c86c8f-3c49-4252-8fff-01ef7bde4b1a)

         6\. Configure sync rules

         
         
         
         1.  ![](https://support.taxcloud.com/api/attachments.redirect?id=82d679fc-58d7-4667-8c38-4e997ec1cc07)
         2. Enable the switch to **Post invoices & credit notes to TaxCloud**. *This is required for TaxCloud to handle tax reporting and filing.*
         3. Choose a commit option; TaxCloud recommends **Commit all invoices and credit notes** for most customers. You may wish to chose **Commit only paid invoices** if you use cash-basis accounting.
         4. Click **Proceed**.

## Step 3: Verify Customer Addresses

TaxCloud needs customer address information to calculate taxes accurately. Use the address validation tool to make sure your customers' addresses are correct.


:::info
**Customer Addresses**

* By default, your customers' **shipping addresses** in Chargebee are used for tax calculations.
* If no **shipping address** is provided, the **billing address** is used instead.

:::


1. Go to the TaxCloud app page in Chargebee.
2. In the Validate Existing Addresses box, select the **United States**.

    ![](https://support.taxcloud.com/api/attachments.redirect?id=f9ca3029-e5cd-4818-8da5-fc0e79b81f93)
3. Click **Run Check**. Chargebee notifies you of invalid addresses via email.
4. Correct any customer addresses that failed validation.

## Step 4: Add TaxCloud Exemption Certificates for Exempt Customers

If you have exempt customers, an exemption certificate should be set up for each of them in TaxCloud.


1. Find your exempt customers in Chargebee by setting up a **Customer Taxability is Not Taxable** filter.
2. For each customer, [add an exemption certificate in TaxCloud](/articles/how-to-add-an-exemption-certificate-to-taxcloud-xfuUNu2Qnq).
3. For each customer, add their TaxCloud exemption certificate ID to their Chargebee customer settings.

    ![](https://support.taxcloud.com/api/attachments.redirect?id=d82e680f-2dd8-4c5e-aad7-c49eee92ec3c)

## Step 5: Set Taxability Information for Your Chargebee Product Catalog

As described above, TIC codes tell the TaxCloud tax engine what good or service a Product Catalog item is so that the rates are accurate. Go through all of your Chargebee Product Catalog items to add the best TICs for each plan, addon, and charge. You'll need to set up a TIC for all price points in use for each product catalog item.

To set up a TIC for a catalog item (plan, addon, or charge):


1. In Chargebee, select the catalog item.
2. In the Pricing area, **Edit** a price point.

    ![](https://support.taxcloud.com/api/attachments.redirect?id=a44f55a3-b92d-49c2-b5b5-e11129072314)
3. Set the **TIC**.

 ![](https://support.taxcloud.com/api/attachments.redirect?id=9b934008-37b6-4912-bf82-1eaea3c99d49)


4. Repeat for each price point.

## Step 6: Enable TaxCloud for the United States Region

Performing this step will configure Chargebee to use TaxCloud for sales tax in the United States.


1. In Chargebee, navigate to **Settings > Configure Chargebee > Taxes**.
2. Click **United States**.
3. Enable TaxCloud for the tax profile that you use for sales in the United States.

 ![](https://support.taxcloud.com/api/attachments.redirect?id=4d4fbb56-f036-41ff-89da-413f07e5bfcb)


:::tip
**Tip**: If you have multiple tax profiles, make sure the profile with TaxCloud is selected on your product catalog items. If a catalog item has no tax profile specified, the Primary profile is used.

:::

## Next Steps

* Review the [Transactions page](https://app.taxcloud.com/go/transactions) in TaxCloud to see your Chargebee tax lookups and orders.
* Add additional exemption certificates for exempt customers as needed.