This page describes how to set up taxation.

Configuring taxes

Configure your system for the taxes that are relevant to you. For example, if you're in the USA you might configure a "USF" (Universal Service Fund) tax and a "Sales tax". If you're in Europe you might configure a "VAT" tax.

1. Using the top-right selection box ensure you're working as your system level user or a reseller, not an end-user customer. Taxes can be applied to sub-customers of the customer that created the tax.
2. Click on Customers » Commerce » Taxes.
3. Click on the "New" button and you'll get a form for this tax's details to be entered. Most settings do not need changed.
4. Enter a name for the tax.
5. Set "Allow resellers to assign to customers" to "Yes".
6. In the "Rate" field enter the percentage rate for the tax.
7. In the "Applies to" section review what the tax is relevant to. For example, the "USF" applies only to calls, but "Sales tax" or "VAT" could apply to everything. The fields to configure are:
   • Customer account fee: Whether tax is applied to the customer account fee. That fee is set in the customer's rate plan under "Fees for features".
   • Customer features, excluding numbers: Whether tax is applied to fees for customer features such as telephone lines and voicemail boxes. Those fees are set in the customer's rate plan under "Fees for features".
   • Numbers: Whether tax is applied to prices for customer's numbers as listed in Devices and numbers » Numbers » Numbers. Those prices are set in the customer's rate plan under "Number classes".
   • Calls: Whether tax is applied to inbound and outbound calls to and from the customer. Those prices are set in peer costs or the customer's rate plan under "Inbound call cost exceptions" and "Outbound call cost exceptions".
   • Products: Whether products default to having this tax applied. Takes effect when a product is saved, and can be added or removed per product. Products are configured under Features and tools » Tools » Products and are then available to purchase by customers.
   • Charges: Whether charges default to having this tax applied. Takes effect when a charge is saved, and can be added or removed per charge. Charges are configured in rate plans or customers under "Charges" and are applied by the billing system.
8. Click on "Save".

Repeat the above steps for other taxes if necessary. Note that for a tax to be added it must be applied at the relevant field within the tax, and the customer must be liable for the tax, and if it's a product or charge then the tax must be applied in it also.

Applying taxes to customers and their features

1. Click on Customers » Commerce » Customers and select the customer to edit, or create a new one.
2. Scroll down and in the "Billing" section find the "Taxes which apply" field.
3. Add or remove taxes as required.
4. Click on "Save".

Example: The "USF" tax is applied to only calls and the "Sales tax" is applied to everything. A customer is liable for both these taxes. The customer makes a call and the system adds the "USF" tax and the "Sales tax" to the price. The customer purchases a telephone line and the system adds the "Sales tax" but not the "USF" tax.

Applying taxes to products

1. Click on Features and tools » Tools » Products and select the product to edit, or create a new one.
2. Scroll down and in the "Costs" section find the "Taxes which apply" field.
3. Add or remove taxes as required.
4. Click on "Save".

Example: The "USF" tax is applied to only calls and the "Sales tax" is applied to everything. A customer is liable for both these taxes, and a product has only the "Sales tax" applied. The customer purchases one of the product and the system adds the "Sales tax" but not the "USF" tax. A different product does not have the "Sales tax" applied. The customer purchases the different product and although the customer is liable for the "Sales tax" it is not added because the product does not also have the "Sales tax" applied.

Applying taxes to charges

1. Click on Customers » Commerce » Rate plans or Customers » Commerce » Customers and select the rate plan or customer to edit.
2. Scroll down to the bottom and click on "Charges".
3. Select the charge to edit, or create a new one.
4. In the "Taxes which apply" field add or remove taxes as required.
5. Click on "Save".

Example: The "USF" tax is applied to only calls and the "Sales tax" is applied to everything. A customer is liable for both these taxes, and a charge is added to the customer which by mistake only has the "USF" tax applied. The system does not add any taxes because the "USF" tax is applied only to calls, and the "Sales tax" was not applied to the charge.

Testing your configuration

Test your tax configuration by taking actions that will result in the customer being charged. Afterwords check that the final price is correct given the system or rate plan price and the tax(es) that should have been applied. For example, make a call to an external number, or set a monthly fee for telephone lines in a rate plan and then add a new telephone so there will be a pro-rata charge for it. At the bottom of the edit customer page there are useful links to the customer's "Call history" and "Transactions".