The following taxation objects are used in Billing:
- Taxation rules are central objects of taxation functionality in Billing. They specify what tax will be used for specific group of customers if they purchase products from given category.
- Tax is a specific tax with a certain rate to be charged (for example, VAT 20%). Taxes are subdivided on those levied on particular services and those levied depending on customer's domicile (federal, state, local and other taxes).
- Tax zone groups all customer's federal, state, and other taxes; it is assigned to customer automatically on purchasing service plan.
- Tax zone assignment rules designate tax zone to customer in dependence on the provider's location and customer's location relative to the provider's location.
- Tax category groups plan or resource categories to which a Tax is applied (for example, "Telecommunication services", or "Software and licenses"). Tax categories are useful when the provider must charge different taxes for different products: for example, when providing web hosting must be charged VAT 20%, and downloading software must be charged VAT 10%.
Billing comes with already pre-configured set of tax zones, tax categories and tax zone assignment rules. When configuring taxation, you basically need to operate with taxation rules. Adjusting other taxation objects is not required in most cases.