Taxes

Automate indirect tax compliance on all your transactions using Solidgate

As a merchant, you may need to charge taxes on your sales and then report and remit those taxes to the government. Tax laws and regulations are complex and subject to change, but Solidgate can automatically handle the most common indirect tax calculations. The common forms of indirect taxes for your business include sales tax, value-added tax (VAT), and goods and services tax (GST). These taxes apply to selling physical goods, digital goods, and services.

Solidgate does not file or remit your sales taxes for you. Therefore, you must register your business with a local or federal tax authority to manage indirect taxes.

The calculations and reports provided by Solidgate simplify the process of filing and paying taxes. Always consult with a local tax authority or a tax accountant to ensure you properly charge the correct tax rates and file and remit taxes.

US taxes

Once you have identified the need to charge taxes in the United States, you can automate your tax calculations with Solidgate.

Businesses are strongly advised to seek guidance from local tax authorities or tax professionals to confirm they charge proper tax rates and accurately file and remit taxes.

Connect your preferred sales tax service to Solidgate to ensure compliance and find the best solution for your business. Solidgate partners with trusted tax service providers Avalara and Vertex, offering you the flexibility to select a service that best addresses your business’s specific tax compliance needs.

Avalara automates accurate rate determination, address validation, tax filing, and reporting while complying with jurisdiction rules. It also handles tax rate updates, so you do not have to update the tax rates manually each time they change. Avalara’s integration with Solidgate supports the calculation of US sales tax. Vertex, integrated with Solidgate, provides automated tax determination for sales and seller’s use tax (SUT). Like other advanced tax systems, it aims to optimize compliance, reduce errors, and support both B2C and B2B commerce.

Calculation flow

Solidgate listens to the stream of events and determines if they need to be processed. Solidgate sends API requests to platform partners for precise tax calculations. Once a response is received from the platform partners, the final tax amount is stored for further reporting. Then, it automatically generates and sends electronic receipts that include the calculated tax amount. The step-by-step flow is as follows:

A US customer purchases your product.
Solidgate identifies this as a US sale and transfers the sale to selected tax software.
The tax is calculated based on the customer's location, including address, ZIP code, and other relevant details, and collected in one of the following ways:
- Guide
  Create a custom payment form for a personalized experience. Payment Form : Prompts customers to enter their location when paying with a card.
- Guide
  Apple Pay offers a secure and convenient payment option for iOS users. Apple or Guide
  Google Pay offers a streamlined payment experience for Android devices and web platforms. Google Pay: Uses the billing address defined by the customer in their Apple or Google wallet.
- Guide
  Accept and manage payments from your customers. Host-to-host integration: Customer's address is provided to Solidgate by you.
The calculated tax is available in the selected tax software.
Solidgate can optionally send a receipt with all relevant data to the customer on your behalf.

Solidgate supports all types of payments, including Guide
Accept and manage payments from your customers. card payments and Guide
Connect alternative payment methods to boost your checkout conversion. alternative payments ( Guide
PayPal provides a global online payment platform. PayPal ), and the full lifecycle of payments, including sales, refunds, and Guide
Manage chargebacks effectively to minimize losses and protect your business. chargebacks .

You can start calculating your taxes with no-code integration by simply notifying Solidgate.

Handling chargeback and refund

Solidgate can also 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.

Receipt sending functionality

Solidgate can automatically send compliant receipts with accurate US tax details to your customers after payments made through the Guide
Create a secure and seamless payment page. Payment Page , Guide
Create a custom payment form for a personalized experience. Payment Form , or Guide
Accept and manage payments from your customers. host-to-host integration.

This functionality is integrated with the US tax calculation flow, ensuring accurate and compliant receipts with all relevant tax details. It is important to note that emails are not generated for failed transactions, refunds and chargebacks.

Upon successful completion of the payment through any available integration, the receipt will be sent to the customer’s email address specified during checkout.

Solidgate automatically emails a receipt to the customer at the address provided during checkout for every successful transaction. The receipt includes:

Detailed transaction information that includes tax charged
Product details
Payment confirmation

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