You can configure taxation using:
- Internal Billing taxation mechanism.
- External tax engine: EZTax, Vertex O Series (or its previous version Vertex Cloud). Billing can be integrated with external tax engine by means of the corresponding tax plugin.
The main point of taxation configuration is to define:
- Who will be charged
- What taxes they will be charged
- For which products or services they will be charged
For that, you need to build a set of Taxation Rules in Billing for all your sales regions.
Configuring Taxation Using the Internal Billing Capabilities
To configure taxation:
- Add the necessary tax configurations.
- If necessary, set different tax rates for different calendar periods.
- Define tax zones.
- Define tax zone assignment rules.
- Define special cases for tax zones.
- Define tax categories.
- Create taxation rules.
How to Apply Several Taxes to the Same Product
To apply several taxes to a product you sell (more precisely, to a resource or an order item):
- Create the taxes that must be applied collectively.
- Using the procedure above, create the other necessary objects.
- Create several taxation rules, one for each of the taxes. The taxation rules must be linked to the same tax category.
Limitations
When you apply several taxes to a product:
-
Invoice and Order notification templates will list all the applied taxes only for the total. For individual order or invoice details to which several taxes are applied, the detail tax rate field (the TaxDetail_Tax_Rate placeholder) will be empty and the total tax field (the TaxTotal placeholder) will display the sum of the applied taxes. The tax calculation will not be affected and will be performed correctly.
How to Configure the Tax Refund with a Rate from the Previous Year
To apply tax refunds with the tax rate from the original charge, you need to create a Tax Rule with the following configuration:
-
Calculate Type > Calculate Per Item
-
Apply on > Document Date (Default value)
The feature is disabled by default. To enable the feature, enable the billing feature FEA_REFUND_WITH_ORIGINAL_TAX. For the instructions, refer to this section.