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 and Manage a customer's tax ID numbers.

Validation

Rebilly validates customer and organization tax ID numbers when a TaxJar 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.

Automated tax calculations

Rebilly supports automated tax calculations internationally, using the location of your organization and the location of your customer. 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.
• 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.

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, click Automations .
2. In the Rules engine section, click Rules engine.
3. Click Billing events.
4. Click Invoice tax calculation failed.
5. Click Rule set, then in the top right of the screen, click Create rule.
6. In the Rule name field, enter a unique name.
7. Clear the Stop further processing checkbox.
8. In the Actions section, click Add action and select Send email.
9. In the Title field, enter a title for the email notification.
10. In the From field, enter the address you want to receive the email notification from.
11. In the To field, enter the addresses you want to send the notification to.
12. In the Subject field, enter a subject for the notification.
13. In the Email content field, enter the content of the email notification.
    To add dynamic content event based content. For example, a placeholder the associated invoice ID number is {{invoice.invoiceNumber}}. For more information, see Placeholders.
14. Click Save.

Manually adjusting taxes

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

1. In the left navigation bar, click Data tables, then click Billing.
2. Click Active subscriptions, or Unpaid invoices.
3. In the ID or Invoice number column, click a subscription ID.
4. On the upcoming invoice, on the right of Taxes, click .
5. Complete the form, then click Save.

Third-party tax integrations

TaxJar

To use TaxJar for tax calculation and related features, see TaxJar integration.

Avalara

To use Avalara for tax calculation and related features, see Avalara integration.