Tax Rates

Accounting service providers are usually pre-configured with a set of tax rates available in the business' country of operations. A business can modify those tax rates accordingly as well. This makes it easier to apply rates without having to remember them.

In some cases, a tax is made up of multiple sub taxes, often called components of the tax. For example: You may have an item that is charged a tax rate called "City import tax (8%)" that has two components:

  • A city tax of 3%.
  • An import tax of 2%.

The Tax Rate Object

Property

Type

Description

id

string

Unique identifier for the tax rate.

name

string

Name of the tax rate in the accounting platform.

code

string

Code for the tax rate from the accounting platform.

effective_tax_rate

number

Tax rate that involves a combination of multiple tax rates

total_tax_rate

number

Total (not compounded) sum of the components of a tax rate.

components

object[]

Array of different components associated with the tax rate

updated_at

string

The last updated date in ISO 8601

{
      "id": "1",
      "name": "Harmonized sales tax",
      "code": "HST",
      "effective_tax_rate": 0,
      "total_tax_rate": 13,
      "components": [
        {
          "name": "HST",
          "rate": 13,
          "is_compound": false,
          "is_purchases_tax": false,
          "is_sales_tax": false
        }
      ],
      "updated_at": "2021-03-10T11:26:06.619Z"
    }