Tax

Note: Taxation strategies are optional and only need to be applied to a rate-plan if tax calculations are required

BillForward enables customers to automatically apply taxes to their pricing. Multiple taxes may be applied to a single item and the tax jurisdiction may be at a national or state level. Pricing may be described as inclusive or exclusive of tax.


Taxation Strategies

BillForward represents taxes as taxation-strategies. You may configure as many taxation-strategies as required to correctly model applicable national, state, or other taxes.

Taxation-strategies define the applicable taxation percentage as well as the location for which the tax is valid. This may be at national or regional level.

Example:

{
    "organizationID": "ORG-E58BC014-3EC5-11E6-BC39-D5511267",
    "country": "United States",
    "currency": "USD",
    "name": "Sales Tax",
    "percentage": "7.50",
    "defaultTaxationStrategy": false
}

Localized Taxation

Regional taxes such as state tax may be defined by specifying the province when creating a taxation-strategy. If a product-rate-plan has been enabled for localized taxation the correct taxation-strategy will be applied for each end customer based on their location.

Example:

{
    "organizationID": "ORG-E58BC014-3EC5-11E6-BC39-D5511267",
    "country": "United States",
    "province": "CA",
    "currency": "USD",
    "name": "CA Sales Tax",
    "percentage": "8.75",
    "defaultTaxationStrategy": false
}

Default Taxation

A taxation strategy may be marked as default for a specific currency.

"defaultTaxationStrategy": false

If no taxation-strategies have been explicitly added to a product-rate-plan then the default taxation-strategy associated with the product-rate-plan's currency will be used when calculating tax.

Note: Only one taxation-strategy may be marked as default per currency


Applying Taxes

Taxation-strategies may be explicitly applied to a product-rate-plan.

Tax Status

The tax status of a product-rate-plan defines whether pricing is inclusive or exclusive of tax.

"taxStatus": "inclusive | exclusive"

Inclusive of Tax

Prices defined as inclusive of tax are treated as having had tax applied to them already.

When a quote or invoice is generated the taxation-strategies associated with the product-rate-plan will be used to calculate the cost excluding tax.

Example:

A quote generated for a product-rate-plan with a total cost of $11 and an associated taxation-strategy of 10% would result in a total cost of $11 including $1 of tax.

Exclusive of Tax

Prices defined as exclusive of tax are treated as if tax has not yet been applied.

When a quote or invoice is generated the taxation-strategies associated with the product-rate-plan will be used to calculate the cost including tax.

Example:

A quote generated for a product-rate-plan with a total cost of $10 and an associated taxation-strategy of 10% would result in a total cost of $11 including $1 of tax.

###Localized Taxation A product-rate-plan may be enabled for localized taxation.

"localizedTax": true

When localized taxation is enabled BillForward will use the appropriate local tax jurisdiction for an end customer when generating a quote or invoice.

The taxation-strategy chosen is decided by the currency of the product-rate-plan and the province of the end customer's primary address

Example:

{
    "profileID": "PRF-787DD71E-3ECF-11E6-BC39-D5511267",
    "organizationID": "ORG-E58BC014-3EC5-11E6-BC39-D5511267",
    "addressLine1": "Example Inc",
    "addressLine2": "123 4th st",
    "city": "San Francisco",
    "province": "CA",
    "country": "United States",
    "postcode": "94103",
    "primaryAddress": true
}

Note: To use localized taxataion an end customer must have an active primary address with a province specified.