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.