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

PropertyTypeDescription
idstringUnique identifier for the tax rate.
namestringName of the tax rate in the accounting platform.
codestringCode for the tax rate from the accounting platform.
effective_tax_ratenumberTax rate that involves a combination of multiple tax rates
total_tax_ratenumberTotal (not compounded) sum of the components of a tax rate.
componentsobject[]Array of different components associated with the tax rate
updated_atstringThe 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"
    }