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"
    }