instellix Tax Service Configuration
The instellix tax engine is the default tax provider of your tenant: it calculates the taxes for your documents based on the tax rules you configure — no additional setup is required. On this page you learn how this default works and how to route individual countries to an external tax provider instead.
For example, you can keep tax calculation for Germany and France on the instellix tax engine with your own tax rules, and assign Avalara AvaTax for the United States. The assignment is made per country and can optionally be narrowed to a single billing group.
Assign a tax provider to a country
To manage tax provider assignments, navigate to: Configuration > Billing > Tax Rules. The section Tax Provider Configuration lists your existing assignments. To add one, open the dialog Assign Tax Provider to Country.
An external tax provider can be assigned to each country. Optionally, the ident of a billing group can be used to narrow the assignment. If no tax provider is configured for a country and billing group, the instellix tax engine is used.
The dialog contains the following fields. All fields marked with an *asterisk are mandatory.
External tax provider*
The external tax engine that calculates taxes for the matching documents — for example Avalara AvaTax. This determines whose calculation is used for the selected country, so make sure the provider is connected and configured before you assign it.
Country*
The country the assignment applies to. Assignments are made country by country, so you can mix providers across your markets and keep the instellix tax engine everywhere else.
Billing group
Optional: the ident of a billing group. With a billing group set, the assignment applies only to documents of that billing group — this lets different parts of your business use different tax providers within the same country. Without it, the assignment applies to the whole country.
Note: Your tax rules in the section Tax Rules for instellix Tax Provider apply automatically only if no external tax provider is assigned for the country and billing group of a document. Documents routed to an external provider are taxed by that provider.
Via API
You can manage the configuration of the instellix tax service via the Tax API:
- Read the tenant-level tax service configuration: Get Tax Service Tenant Configuration
- Create or update the tenant-level tax service configuration: Create or Update Tax Service Tenant Configuration
- Configure the tax service per billing group — for example to activate the VAT ID check during invoice creation: Create or Update Tax Service Billing Group Configuration. See VAT-ID check during billrun for how the check works.