Overview: What are Tax groups and Tax markets?
August 21, 2024
Tax management in Brink Commerce is a flexible and powerful service designed to handle VAT and other taxes across various products and markets. Here's an overview.
With Tax groups and markets, you can:
- Define tax rates per category
- Define tax rates per country
- Set shipping tax per country
Tax management in Brink Commerce is a flexible and powerful service designed to handle VAT and other taxes across various products and markets. Setting up Tax groups and Tax markets before adding products ensures that tax calculations are applied accurately, streamlining your operations and ensuring compliance.
Prerequisites
Before you start creating products in Brink Commerce, it’s essential to set up Tax groups and Tax markets. This foundational step is crucial for ensuring that taxes are calculated correctly across all your products and markets.
Concepts of Tax in Brink Commerce
- Tax groups
- Definition: Tax groups categorize products into different tax categories, such as electronics, books, groceries, etc. to enable different tax percentages.
- Structure: Each Tax group has a unique identifier (“id”) and a name that describes the category.
- Purpose: Assigning products to a Tax group ensures that the appropriate tax rate is applied based on the product category.
- Tax markets
- Definition: Tax markets represent the tax rate that should be applied in a specific market (country).
- Structure: A Tax market includes:
- Percentage: The tax rate for the market.
- Decimals: The precise tax rate, represented in decimal form.
- Purpose: Tax markets are linked to specific countries, ensuring that taxes are calculated correctly for each region.
- Shipping tax
- Definition: A Tax group (same as above) designated for Shipping taxes
- Structure: Has the same structure as a Tax group
- Purpose: Used to set shipping taxes for each country
- Product Variants
- Role: Each Product Variant is assigned to a specific Tax group, allowing the Brink Shopper API to automatically calculate taxes based on the assigned Tax market's rate.
- Role: Each Product Variant is assigned to a specific Tax group, allowing the Brink Shopper API to automatically calculate taxes based on the assigned Tax market's rate.
Entity Relationships
- A Tax group can have multiple Tax markets assigned, allowing for different tax rates across various regions.
- A Tax market can only be associated with one Tax group, although Tax markets can be called the same in different Tax groups.
- Product Variants are linked to a specific Tax group, ensuring that the correct tax rate is applied when products are added to Brink Commerce.
