Tax Calculation
The service provides location determination and tax calculation via the stand-alone /tax/calculate
API endpoint and also via the /transactions
API endpoint.
Product taxability
For US transactions, the product_tax_code
is a required field for each line item as the product type may determine which taxes and tax rates apply.
Jurisdiction determination
Along with the product_tax_code
you must provide the 2-digit state code and Zip Code in the invoice_address.region
and invoice_address.postal_code
fields. When possible a Zip+4 should be used to ensure the most accurate jurisdiction determination. The Address Validation service can be used to determine the Zip+4 from a street address.
Tax components
As well as overall and per transaction-line tax rates and amounts, the result includes an overall and transaction-line level breakdown into the individual taxes which are applied. As shown in the example below, state, country, city, and other taxes are stated individually in the tax_components
array in the transaction object and in each transaction line. Tax reports also include this level of detail.
{
"transaction": {
"currency_code": "USD",
"transaction_lines": [
{
"custom_id": "1",
"amount": 100,
"product_type":"default",
"product_tax_code": "310108"
}
],
"billing_country_code": "US",
"invoice_address": {
"street_name": "10 Pine St",
"city": "Seattle",
"region": "WA",
"postal_code": "98103",
"country":"US"},
"buyer_name":"California",
"buyer_ip": "72.229.28.185"
},
"private_token": "priv_test_36gHlrdp5ULnpkerpzYLGLTE4jp2TXswZ6QS3B_QJnE"
}
{
"transaction": {
"amount": 100.0,
"invoice_address": {
"street_name": "10 Pine St",
"city": "Seattle",
"region": "WA",
"postal_code": "98103",
"country": "US",
"used_for_tax_calculation": true,
"lookup_result": {
"found": true,
"score": 1,
"found_data": {
"street_name": "10 PINE ST",
"city": "SEATTLE",
"postal_code": "98101+1531",
"county": "KING",
"state": "WA"
},
"cached": true
}
},
"external_key": "jB1QxcaAVJ-U1JhB",
"tax_country_codes": "US",
"tax_amount": 10.1,
"tax_deducted": false,
"tax_region": "US",
"billing_country_code": "US",
"evidence": {
"by_ip": {
"evidence_value": "72.229.28.185",
"used": true,
"resolved_country_code": "US",
"evidence_type": "by-ip"
},
"by_billing": {
"evidence_value": "US",
"used": true,
"resolved_country_code": "US",
"evidence_type": "by-billing"
}
},
"tax_country_code": "US",
"countries": {
"by_ip": {
"tax_region": "US",
"tax_supported": true,
...
},
"by_billing": {
"tax_region": "US",
"tax_supported": true,
...
},
"detected": {
"tax_region": "US",
"tax_supported": true,
...
}
},
"transaction_lines": [
{
"amount": 100.0,
"unit_price": 100.0,
"tax_amount": 10.1,
"tax_deducted": false,
"tax_region": "US",
"cached_rate": false,
"tax_rate": 10.1,
"additional_currencies": {
"tax": {
"currency_code": "USD",
"amount": 100.0,
"total_amount": 110.1,
"unit_price": 100.0,
"fx_rate": 1,
"tax_amount": 10.1
}
},
"tax_country_code": "US",
"line_key": "PEyhWd4CjKNolPur",
"custom_id": "1",
"product_type": "default",
"tax_name": "WA Tax",
"product_tax_code": "310108",
"line_num": 1,
"quantity": 1,
"total_amount": 110.1,
"tax_components": [
{
"tax_rate": 6.5,
"tax_amount": 6.5,
"state_code": "WA",
"tax_name": "STATE SALES TAX",
"tax_authority_id": "12047",
"tax_authority_name": "WASHINGTON, STATE OF",
"jurisdiction_code": "",
"percent_taxable": 1.0
},
{
"tax_rate": 3.6,
"tax_amount": 3.6,
"state_code": "WA",
"tax_name": "COUNTY SALES TAX",
"tax_authority_id": "10552",
"tax_authority_name": "KING, COUNTY OF",
"jurisdiction_code": "1726",
"percent_taxable": 1.0
}
],
"tax_entity_name": "US",
"tax_supported": true
}
],
"buyer_ip": "72.229.28.185",
"refunded_tax_amount": 0,
"force_country_code": null,
"country_name": "United States",
"product_classes": "D",
"fully_informative": false,
"kind": "us-b2c",
"refunded_total_amount": 0,
"order_date_type": "timestamp",
"shipment_country_data": {},
"buyer_name": "California",
"deducted_tax_amount": 0,
"order_date": "2020-04-15T08:09:14Z",
"total_amount": 110.1,
"tax_components": [
{
"tax_name": "STATE SALES TAX",
"tax_rate": 6.5,
"tax_amount": 6.5
},
{
"tax_name": "COUNTY SALES TAX",
"tax_rate": 3.6,
"tax_amount": 3.6
}
],
"tax_timezone": "GMT",
"sub_account_id": "18109",
"tax_entity_name": "WA",
"tax_supported": true,
"customer_id": "rZRp6hA-VCu1yZXD",
"currency_code": "USD"
},
"tax_required_fields": [
{
"field_name": "invoice_address.postal_code"
}
],
"storage_required_fields": [],
"is_delegated": false
}
Updated over 2 years ago