Understanding taxes and all their aspects is crucial for businesses operating across multiple regions, where varying regulations can significantly impact financial operations. Effective tax management goes beyond compliance with local laws. It also ensures accurate reporting, transparent pricing for customers, smooth operational workflows, and proper handling of chargebacks and refunds within the tax context.
Tax calculation events
Guide
Subscribe for events on your Solidgate account so your integration can automatically trigger actions.
Webhooks
notify merchants in real-time about their
calculated taxes
Webhook
.
The request body varies based on the transaction action, the location being a US state or non-US country, whether tax was calculated, and other factors. For instance, the webhook will show negative amounts if the transaction action is not a sale action like refund, or tax information may be absent if the tax calculation fails due to reasons like missing zip code.
By delivering tax details, including transaction amount, tax amount, tax type, and transaction context, this webhook offers businesses an efficient, automated solution for accurate tax management.
To start receiving new webhooks you need to subscribe to the Calculated tax event.
- Go to Developers > Channels.
- Find the needed channel and click on it.
- In the Webhooks section, select +Add an endpoint.
- In the appeared form:
- Select Calculated tax from the dropdown list
- Specify URL
- Click on Add to save changes and start receiving the events.
Tax actions
| Value | Description |
|---|---|
| sale | A payment transaction indicating the successful purchase of goods or services. |
| refund | A return of funds to the customer following a request for a refund. |
| chargeback | A payment dispute initiated by the customer, resulting in the reversal of funds back to the customer. |
| rdr | A request for transaction details during a dispute, typically initiated by the acquirer or issuer. |
| chargeback_reversed | A previously issued chargeback has been successfully reversed, restoring funds to the merchant. |
| rdr_reversed | A previously initiated retrieval dispute request (RDR) has been reversed, concluding the dispute process without fund movement. |
| paypal_dispute | A dispute initiated via PayPal's resolution center, typically involving buyer-seller transaction disagreements. |
For all action types except sale , chargeback_reversed , and rdr_reversed , the calculation amounts will be negative.
Product tax categories
Solidgate Tax categorizes products using product tax categories to apply the correct tax rates based on regional regulations. Tax rates can vary depending on the product segment. For instance, a software license may be taxed differently from a streaming subscription, with varying rates depending on the region. Using the correct category ensures compliance with local tax laws and helps prevent miscalculations.
Refer to the table below for available product tax categories. If a product does not fit a specific category, contact your account manager or the Solidgate support team to request the addition of a tax category. Solidgate is working on expanding the list.
| Tax category ID | Tax category | Description |
|---|---|---|
| taxc_01JJVD830C789HBQVTVCWJ6AK2 | Infrastructure as a service (IaaS) - personal use | Cloud-based infrastructure services purchased for personal use. It includes access to virtual computing resources such as processing power, storage, and networking, intended for individual projects, personal software deployment, or non-commercial activities. |
| taxc_01JJVD830DS6VQT824YK6CV9C0 | Infrastructure as a service (IaaS) - business use | Cloud-based infrastructure services purchased by businesses for commercial use. It covers virtual computing resources such as processing power, storage, and networking, which are used to support business operations, software deployment, and enterprise workloads. |
| taxc_01JJVD830D0XPCQE3R5VFSE7ZZ | Platform as a Service (PaaS) - personal use | Cloud-based platform services purchased for personal use. It includes access to development environments, tools, and infrastructure that allow individuals to build, deploy, and manage applications without handling underlying hardware or operating systems. This category is intended for non-commercial projects and personal application development. |
| taxc_01JJVD830DZTYPXZ0FYJQ4A1N4 | Platform as a service (PaaS) - business use | Cloud-based platform services purchased by businesses for commercial use. It includes access to development environments, tools, and infrastructure that enable enterprises to build, deploy, and manage applications without managing underlying hardware or operating systems. |
| taxc_01JJVD830DX4RVVGF94BCZ695X | Software as a service (SaaS) - personal use | Cloud-based software services purchased for personal use. It includes access to software applications delivered over the internet without requiring installation or ownership of the underlying infrastructure. |
| taxc_01JJVD830D107RD1KSRYYXV9H8 | Software as a service (SaaS) - business use | Cloud-based software services purchased by businesses for commercial use. It includes access to software applications delivered over the internet without requiring installation or ownership of the underlying infrastructure. |
| taxc_01JJVD830DCSVY526GKFJCWRHJ | Software as a service (SaaS) - electronic download - personal use | Cloud-based software services purchased for personal use, where the software is electronically transferred to the customer. It includes applications that are downloaded or accessed over the internet without requiring physical media or customization for a specific user. |
| taxc_01JJVD830DTYF9FSKYDR65E7HB | Software as a service (SaaS) - electronic download - business use | Cloud-based software services purchased by businesses for commercial use, where the software is electronically transferred to the customer. It includes applications that are downloaded or accessed over the internet without requiring physical media or customization for a specific business. |
| taxc_01JJVD830EKTKTGDT57PEZQR6X | Electronically delivered audiobooks - personal use | Audiobooks that are delivered electronically for personal use. It includes digital recordings of books read aloud, whether prerecorded or live, that are transferred to the purchaser via electronic means rather than physical media. |
| taxc_01JJVD830EA2FDRTRCPNCT7833 | Electronically delivered audiobooks - business use | Audiobooks that are delivered electronically for business use. It includes digital recordings of books read aloud, whether prerecorded or live, that are transferred to the purchaser via electronic means rather than physical media. |
| taxc_01JJVD830D67G3TNPKKWGSDGZH | Electronically delivered books - personal use | Books that are delivered electronically for personal use. It includes digital versions of books, such as novels, encyclopedias, dictionaries, and manuals, etc. that are transferred to the purchaser via electronic means rather than physical media. |
| taxc_01JJVD830DRK5EZKGXGHW0KX9Y | Electronically delivered books - business use | Books that are delivered electronically for business use. It includes digital versions of books, such as business directories, manuals, and reference materials, etc. that are transferred to the purchaser via electronic means rather than physical media. |
| taxc_01JJVD830EBNNTEYXB7V7KT39J | Electronically delivered music - personal use | Sound recordings that are delivered electronically for personal use. It includes digital music files, spoken word recordings, ringtones, and other audio content that is transferred to the purchaser via electronic means rather than physical media. |
| taxc_01JJVD830EMGE1792BN61T31SC | Electronically delivered music - business use | Sound recordings that are delivered electronically for business use. It includes digital music files, spoken word recordings, ringtones, and other audio content that is transferred to the purchaser via electronic means rather than physical media. |
| taxc_01JJVD830EX1QXW2GFBX6K1P92 | Electronically delivered information services (personal in nature/personalized) - personal use | Electronically delivered information services that are personalized or individual in nature and intended for personal use. It includes specialized digital content that is tailored to the purchaser and not widely distributed in reports to others. This category covers information provided through electronic means rather than physical media. |
| taxc_01JJVD830EYP2BHMR3VTSXPXY1 | Electronically delivered information services (personal in nature/personalized) - business use | Electronically delivered information services that are personalized or individual in nature and intended for business use. It includes specialized digital content tailored to a specific business or organization and not widely incorporated into reports furnished to others. This category covers information provided through electronic means rather than physical media. |
| taxc_01JJVD830E67AESXXS76XF6WWD | Electronically delivered information services (general/non-personal) - personal use | Electronically delivered general information services intended for personal use. It includes digital content that is not personalized or tailored to an individual and may be widely available to multiple purchasers. This category excludes advertising and other information provided to media. The information is delivered electronically rather than through physical media. |
| taxc_01JJVD830ESC1CKGA9TGE8TKQ8 | Electronically delivered information services (general/non-personal) - business use | Electronically delivered general information services intended for business use. It includes digital content that is not personalized or tailored to a specific business and may be widely available to multiple purchasers. This category excludes advertising and other information provided to media. The information is delivered electronically rather than through physical media. |
| taxc_01JJVD830EJDWX88TQX12WV6T1 | Non-taxable | Goods or services that are not subject to VAT, sales tax, or other applicable taxes in any jurisdiction. It can be used to classify disbursements, exempt transactions, or specific items that remain tax-free regardless of local tax regulations. |
To apply a tax category to a product
- Go to Billing > Products.
- Find the needed product and click on it.
- In the Taxes section, select the tax category from the dropdown list.
- Click on Save changes.
- If the product has subscriptions but no tax settings, you can set a tax category once, but further modifications are not possible.
- If the product has subscriptions and tax settings applied, there is no option to modify the product. Instead, create a new product and assign the required tax category.
Handling chargeback and refund
Solidgate can handle various chargeback scenarios defined by multiple parameters such as type, status, amount, and currency. These rules can apply not only to chargebacks but also to other operations, such as refunds. Solidgate initiates corresponding events for platform partners in case of a refund or chargeback. Conditions include:
- Full amount in process: If the chargeback is in process, Solidgate initiates a tax refund for the full amount of the chargeback.
- Full amount, and documents submitted: In this case, the event is ignored by Solidgate.
- Partial amount in process: Solidgate issues a tax refund for the full initial payment amount and then generates a new tax for the remaining amount.
- Partial amount, documents submitted: In this case, the event is ignored by Solidgate.
- Full refund/chargeback: Solidgate generates a new tax transaction for the full initial payment amount.
- Resolved RDR chargeback: Solidgate issues a tax refund for the full amount of the chargeback.
- Second chargeback: Solidgate adjusts its calculations, modifies the tax refund, and generates a new tax transaction based on the
Guide
The chargeback entity signifies the start of the dispute process, containing the chargeback type and chargeback status. type and status of the second chargeback.