About tax rules

You can configure multiple tax rules for your tenant. Thus, Nitrobox can calculate taxes and gross prices for all billable items automatically. For this to work, the tax rates must first be configured in the Webportal. The creation of the tax rule consists of two parts:

Tax rules

Specifies the parameters of the tax such as

• tax rate
• country
• region
• customer type (e.g. B2B, B2C, none)
• item type (e.g. digital product, labor cost)

Tax variants

Specifies the different variants of a tax rule and indicates when it has to be applied**

The tax variants feature enables you to automate tax changes on pre-defined dates, e.g. due to legal changes in VAT. Important: Only one variant per tax rule is applicable at a time.

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Examples:

Service country: Germany
Tax variant: 1.1
Tax rate: 19%
Applicable from: 01.01.2020

Service country: Germany
Tax variant: 1.2
Tax rate: 16%
Applicable from: 01.06.2020

Service country: Germany
Tax variant: 1.3
Tax rate: 19%
Applicable from: 01.01.2021

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Manage tax rules

Configure tax rules for your tenant via API calls or in the Nitrobox Webportal. For a detailed description of the tax rule data fields go to the Nitrobox API Documentation.

Add tax rule

To create a new tax rule go to the “Configuration” section of the main navigation on the left side. Click the navigation item “Business model” and select “Tax Rules” to get to the "Tax Rule Overview”. Click the „+ Add“ button in the top left corner of the overview, which opens an overlay.

Fill in the data fields listed in the overlay. All fields marked with an *asterisk are mandatory. Select the country where you want the tax rule to be applied from the drop-down menu. Specify the tax rule by selecting the product and customer type. By doing so, the tax rule will be applied only to products that match the configuration of the tax rule.

Reverse charge

The switch "Consider VAT-ID" can be activated for the customer type B2B to enable the reverse charge procedure. If this switch is activated, the customer's VAT ID will be used to collect the tax directly from the customer in case of reverse charge.

As mentioned before, each tax rule needs a tax variant. Fill in the tax name, tax rate, tax code and application date. These parameters are necessary for the tax calculations, creation of financial reports etc.

Click the “Add” button in the bottom right corner to save the new tax rule. A confirmation note will pop up at the top right corner. The new tax rule will be listed in the tax rule overview and is ready to go. If you want to cancel instead of save the new tax rule, click “Discard” and the pop-up window will close.

Tax rule details

To see the details of a tax rule, go to the “Tax Rule Overview" page. Choose the tax rule you would like to check and click on the “Details” button at the end of the respective entry.

The “Tax rule detail” page gives you a detailed overview of the tax rule data and tax variant configurations. If you want to edit the rule, click the “Edit” button next to the rule name. If you want to delete the tax rule, click the “Delete” button on the top right corner.

Add tax variants

You can also add new tax variants. This enables you to define temporary changes to the tax rule, for example, to respond to legal changes in the VAT of products. The new variant always starts on the date defined in its configuration and is valid until a new tax variant is applied.

To add a new tax variant to the tax rule, go the “Tax rule variants” section of the detail page. Click the "+ Add“ button and fill in the tax name, tax rate, tax code and application date. Click the “Add” button in the bottom right corner to save the new tax rule variant. A confirmation note will pop up at the top right corner.

The new tax rule variant is now listed in the tax rule variant overview and is ready to go. If you want to cancel instead of save the new tax rule, click “Discard” and the pop-up window will close.