Tax

You configure tax per business, and tmbilling computes it per invoice line.

Place of supply

The place of supply decides where a sale is taxed: your customer's country, and their state or province where the regime is sub-national, read against where you are registered.

That is why a customer's address is a tax input rather than a shipping detail.

Configure a tax region

A region is a country you have made taxable:

Each region holds its regime, whether your prices are inclusive or exclusive, your registration, and the gates that switch tax off entirely — reverse charge, export and special economic zones.

Set the component vector

A region's tax is a vector of components, not a single percentage. A domestic Indian sale carries CGST and SGST as separate components, while an inter-state sale carries IGST instead. Both print separately, because that is what the document has to show.

Sets the component vector for one state scope.

Records your registration in one state — in India, that state's GSTIN — for your own records. The domestic and inter-state split comes from the region's home state compared with the buyer's billing state. The GSTIN printed on an invoice is the business's tax_registration_number (or the organization's, when the organization issues invoices). See India GST invoices.

Create a tax profile

A profile holds the rates for one class of product, which is how a digital service and a physical good get taxed differently in the same region. Give each product a tax_code to select its profile.

Select inclusive or exclusive pricing

Set tax_behavior on each price:

Handle withholding

Some jurisdictions require your buyer to withhold tax and remit it directly.

Set withholding_rate_bps on the customer. It reduces what they pay you without reducing what they owe: the invoice records the full amount and the withheld portion separately, so the difference is explained rather than looking like a short payment.

Apply exemptions

Set tax_exempt on a customer to switch tax off for them.

vat_number drives reverse charge where the regime provides for it: tmbilling zero-rates the sale and the obligation moves to your buyer. Validate the number rather than trusting it:

Expect each invoice to snapshot its tax context

When tmbilling issues an invoice, it snapshots your registration, the place of supply and the rates that applied.

So changing a customer's address, or a region's rates, does not re-tax a document that already exists. New invoices use your new configuration.

Related

• Set up tax in the dashboard
• India GST invoices
• GST and VAT on subscription invoices