# Taxes

This topic describes how to configure and manage taxes in Rebilly.

## Tax ID numbers

It is a common requirement for tax identification numbers to be displayed on invoices.
Rebilly supports tax ID numbers for organizations and customers, which are included on invoices.

When an invoice is created, the organization and customer tax ID numbers may be provided. If set, default tax ID numbers of the organization and customer are used on the invoice but they can be updated for each invoice.

For more information, see [Manage the tax ID numbers of an organization](/docs/settings/organizations-and-websites#manage-tax-id-numbers) and [Manage a customer's tax ID numbers](/docs/data-tables/manage-customer-information#manage-customer-tax-id-numbers).

### Validation

Rebilly validates customer and organization tax ID numbers when a [TaxJar integration](/docs/app-store/tax-jar-integration) is set up. Validation is asynchronous, and the status is displayed in the list of tax ID numbers. Tax ID numbers are included on invoices regardless of their validation status.

Rebilly supports validation for European VATIN tax ID number types.

To receive real time validation result notifications, configure webhooks on the following events:

- `Customer Tax Number Validated`
- `Organization Tax Number Validated`


For more information see, see [Create a webhook](/docs/automations/webhooks#create-a-webhook).

## Automated tax calculations

Rebilly supports automated tax calculations internationally, using the location of your organization and the location of your customer. Tax is collected if the delivery address on the invoice is in the same region as the address of the organization or one of the [tax locations](/docs/settings/organizations-and-websites#manage-tax-locations) assigned to the organization. You may also manually adjust the taxes on an unpaid invoice. Taxes are calculated after an invoice is issued and taxes are recalculated on every invoice change. The shipping amount is added to tax calculations.

To use taxes in Rebilly:

- Your organization must have an address configured. All required fields must be entered. The `Region` field is only required for US, Canada, and Australia. For more information, see [Edit organization information](/docs/settings/organizations-and-websites#edit-organization-information).
- Each invoice must have a delivery address if the invoice includes taxable products. All required fields must be entered. The `Region` field is only required for US, Canada, and Australia. For more information, see [Change a billing or delivery address](/docs/data-tables/manage-subscriptions#change-a-billing-or-delivery-address).


### Manage tax calculation errors

Use this process to receive email notifications if a tax calculation fails for an invoice.

If a tax calculation fails for an invoice, it will also be visible in the timeline on the invoice details page.

1. In the left navigation bar, press .
2. In the **Data and alerts** section, press **Email notifications**.
3. Press **Billing events**, then press **Invoice tax calculation failed**.
4. Press **Create email notification**.
5. In the **Notification name** field, enter a name for the email notification.
6. In the **Labels** field, enter labels to help you identify the email notification.
7. Optionally, to specify additional conditions on when the notification is sent:
  1. In the **Conditions** section, clear the **No conditions** checkbox.
  2. In the **Select filter** dropdown, select a filter.
  3. In the next field, select an operation.
  4. In the next field, enter or select values.
  5. Optionally, to add another filter, press **Add filter**.
8. In the **Emails** section, press **Add email**.
9. In the **Title** field, enter a meaningful title.
10. In the **From** field, select your address. If your address is not listed, press **Add email address**.
11. In the **To** field, add a placeholder or an email address.
12. Optionally, to stay informed on all emails, press **Add BCC** your email or a support email.
13. In the **Subject** field, enter a subject or placeholder.
14. In the **Email content** field, enter the content of the email notification. 
To add dynamic event based content. For example, a placeholder the associated invoice ID number is `{{invoice.invoiceNumber}}`. For more information, see [Placeholders](/docs/automations/email-notifications#placeholders).
15. Press **Save notification**.


### Manually adjust taxes

To manually adjust taxes on an unpaid invoice or upcoming invoice:

1. In the left navigation bar, press , then press **Billing**.
2. Press **Active subscriptions**, or **Unpaid invoices**.
3. In the **ID** or **Invoice number** column, press a subscription ID.
4. On the upcoming invoice, on the right of **Taxes**, press .
5. Select one of the following:
  - TaxJar: Select this option to calculate taxes using TaxJar. For more information, see [TaxJar integration](/docs/app-store/tax-jar-integration/).
  - Avalara: Select this option to calculate taxes using Avalara. For more information, see [Avalara integration](/docs/app-store/avalara-integration/).
  - Manual: Select this option to manually add taxes and tax descriptions to the invoice.
6. Press **Save**.


### Third-party tax integrations

#### TaxJar

To use TaxJar for tax calculation and related features, see [TaxJar integration](/docs/app-store/tax-jar-integration).

#### Avalara

To use Avalara for tax calculation and related features, see [Avalara integration](/docs/app-store/avalara-integration).