Define Tax Rules

Owned by Apostolos Karakaxas
Last updated: May 25, 2017 by Athanasia Kourti

The taxation module of interworks.cloud Platform allows you to define as many taxes you want and for each tax you can have different rules for various combinations of geographical locations and product types. For defining a new tax, navigate to Setup > Administration > System Options > Taxes. For each tax you must define its rules.

Defining a Tax Rule


A tax rule applies to a combination of geographic location and product type. A location can be a country, or the combination of a country and state / province within that country. For each tax rule you define which the tax rate is.

Exceptions for specific country provinces.


If for a tax there are some provinces that have different rate from the rate that is applied country-wide, then you can create for these provinces a tax rule for handling these exceptions. There will be a generic tax rule that covers the whole country and tax rules for applying the exceptions.


 

Tip: If the list of states / provinces for your country is incomplete in Cloud BSS, you can go to Setup > Administration > System Options > Available Countries and add any missing states / provinces.

How Taxes are applied

When a customer places an order, the taxes that must be applied per order item will be calculated as following:

  • From customer’s billing address, the system will find customer location. From order item product, the system will find its product type.
  • The system will check if there are taxes that have a tax rule for the combination of customer location / product type. Each tax will be applied to order item net price.
  • In order total, there will be a line for each tax that applies to order items.

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