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"
}