[
{
"title":"Testing",
"link":"https://docs.solidgate.com/payments/testing/",
"text":"Simulate payments to test your integration before launching in production.",
"imgSrc":"https://solidgate.com/wp-content/uploads/2022/06/icon-customizable.svg"
}
,
{
"title":"Create your payment form",
"link":"https://docs.solidgate.com/payments/integrate/payment-form/create-your-payment-form/",
"text":"Understand how to integrate the payment form into your product.",
"imgSrc":"https://solidgate.com/wp-content/uploads/2022/06/icon-payments.svg"
}
,
{
"title":"Subscriptions",
"link":"https://docs.solidgate.com/subscriptions/",
"text":"Create and maintain a stable and healthy business subscription model.",
"imgSrc":"https://solidgate.com/wp-content/uploads/2022/06/icon-global.svg"
}
]
Empower your global business by managing fixed indirect taxes in Solidgate HUB
Fixed indirect taxes solution is currently in Closed Beta. Review the documentation to learn more, and contact us to get started with it for your business.
Managing taxes is a vital component of running an online business, particularly for companies operating across multiple jurisdictions or offering diverse
Guide
Explore how to create subscription products and prices to streamline payment processing with multi-currency.
product
ranges.
Proper tax management is essential for ensuring compliance with local regulations, maintaining accurate financial records, and providing customers with clear and transparent pricing information.
Solidgate provides an effective tax management toolset that allows businesses to create and manage multiple tax profiles, set up region-specific tax rates, and configure products with appropriate tax settings.
This flexibility is vital in accommodating various taxation models, such as tax-included or tax-excluded pricing, and adapting to different regulatory requirements across countries and regions.
Please note that Solidgate does not act as a tax expert but provides a solution designed to assist merchants with tax compliance and regulations. We recommend using our solution in combination with professional tax advice.
Configure taxes
Before collecting payments with taxes, it is essential to configure the tax rates for your products.
Create tax profile and rates
You can configure taxes for your taxable regions within your HUB account. Key aspects include:
Managing multiple tax profiles when dealing with diverse tax rates and compliance requirements.
Specifying tax rates for particular locations and setting start date for each rate.
Defining tax settings for your products or services, tailored to specific countries.
This flexibility allows you to tailor tax settings to the specific needs of your business, regardless of product complexity or customer base diversity.
To create a tax profile
Go to Account settings > Tax profiles.
In the top-right corner, click on Add profile.
In the pop-up window, specify a name for your tax profile.
Click on Create to save it.
To add rates to a tax profile
Go to the Tax profile page.
Find and click on the needed tax profile.
In the Tax rates section, click on Add rate.
In the pop-up window, complete in the rate information:
Location
Rate
Effective from date and time in UTC
Click on Add to save a new tax rate.
Solidgate does not update tax rates in your tax profile. You need to track and update tax rates when necessary.
If the tax rate changes due to new regulations in a specific country, you can proactively create a new tax rate with a future start date set in UTC.
Consider time zone differences when setting up future tax rates to guarantee accurate and timely implementation of tax changes across different regions.
For example, if a merchant wants to apply new tax rates starting from October 1st at 00:00 (local time) in France, they should set the tax rate start date to September 30th at 22:00 UTC.
This ensures the new rate takes effect at midnight local time in France.
Please note that once created, a tax rate cannot be edited. If you need to change several or all tax rates within a tax profile, create a new tax profile with the correct rates.
Apply tax profile to product
Once the tax profile and rates are created, you can associate them with products and define the type of taxation:
Tax included The product price is already the gross price and includes the applicable tax.
Tax excluded The product price is the net price and taxes will be added later.
Understanding and using the right type of taxation is essential for setting accurate product prices, managing customer expectations, and maintaining tax compliance.
To apply a tax profile to a product
Go to Subscriptions > Products.
Find the needed product and click on it.
In the Taxes section, turn on the toggle to open settings.
Select the created tax profile from the dropdown list.
Select the tax type to be applied to the product.
Click on Save changes.
If the product does not have a subscription in any status, there are no limitations for tax configuration.
However, if the product has active subscriptions, the following limitations apply when applying a tax profile:
If the product has subscriptions and has no tax settings, the only option to modify this product is by adding a tax profile with the tax included type. This ensures that taxes are applied to future payments without impacting current customers.
If the product has subscriptions and tax settings applied, there is no option to modify the product. You should create a new product or tax rate with a future effective from date.
Tax calculation
Once you set up a tax profile and configure it on a product, taxes will automatically be calculated and applied to all your future product sales and locations in the tax profile.
The final price will be based on the tax profile configuration, product configuration, and customer location. If the location is not defined in the tax profile, the tax will not be calculated and applied to product sales.
Calculations are based on the tax type, depending on whether the tax is included or excluded from the product price.
Tax included
Tax excluded
Product:
Digital product monthly subscription
Digital product monthly subscription
Price:
€20 (tax included)
AU$20 (tax is NOT included)
Customer location:
Germany
Australia
Tax rate:
VAT 19%
GST 10%
Tax amount:
€3,19
AU$2
Total amount:
€20
AU$22
Please note that taxes and coupons cannot be used simultaneously. When a coupon is applied to a purchase, no taxes will be calculated or charged for the duration of the coupon's validity period and even after the coupon expires.
The payment process with tax calculations unfolds as follows:
The merchant creates a product and configures taxes for it.
A customer selects the product and adds it to their cart for payment.
The merchant turns to one of Solidgate’s payment solutions for displaying the price and for payment processing:
Guide
Create a custom payment form for a personalized experience.
Payment Form It has the payment details event used to keep track of updates and changes to payment data, including price, taxes, and other relevant information.
Guide
Accept and manage payments from your customers.
Host-to-host Before creating a payment request you should call the price calculation endpoint to receive the final price information with tax details.
Solidgate calculates the final price based on the product and tax configurations and returns this information to the merchant.
The merchant displays the calculated price to the customer.
The customer can now see the final price to proceed with the payment.
Furthermore, Solidgate helps businesses to effectively handle chargebacks and refunds, ensuring seamless payment processing and resolving disputes efficiently.
Tax reports
Solidgate offers comprehensive tax data exporting to assist with compliance and financial analysis. These exports encompass transaction data, including:
Order ID
Transaction and tax types
Price and tax amounts
Country and more
Please note that tax exports are not generated in real-time and may require up to ten minutes for processing.
There are the following types of data exports you can access in the Exports&Reports section of the
Solidgate
HUB
:
Transactions export This export provides comprehensive details on all transactions for a specific account over up to one year. For example, when you download the file with transactions for the last month, you will find a comprehensive set of data that can be broadly categorized into several groups:
Transaction and product details: order_id, processing_time, transaction_type, order_description, product_id
Tax summary export This export provides aggregate data from your account, with its structure and content varying based on the number of:
Tax locations in your tax profiles
Processing currencies in these locations
Legal entities associated with your Solidgate account
For example, suppose you have two legal entities linked to your Solidgate account and pay taxes in Austria, Belgium, and the UK. In that case, the exported data will include separate rows for each legal entity, country, and currency.
Legal entity
Country code
Country
Tax rate
Taxable amount
Tax amount
Currency
Legal entity 1
AUT
Austria
20%
100.00
20.00
EUR
Legal entity 1
BEL
Belgium
21%
150.00
31.50
EUR
Legal entity 1
GBR
UK
20%
180.00
36.00
GBP
Legal entity 2
AUT
Austria
20%
120.00
24.00
EUR
Legal entity 2
GBR
UK
20%
200.00
40.00
GBP
To export the tax data
Go to Reports&Exports.
In the top-right corner, click on +Create report.
In the pop-up window, add the required information:
Select Transactions or Tax summary export type
Specify a date range of up to 1 year
Optionally, change the auto-created file name
Click on Create. Once confirmed, the exports are created for each selected channel.