Tax Compliance

Tax Compliance in instellix ensures that every billable item is taxed correctly and automatically — from determining the right tax rate for each document to validating your customers' VAT IDs in real time.

Tax requirements differ by country, region, customer type, and product — and they change over time. instellix combines a configurable tax engine, integration with an external tax provider, and automated VAT ID validation, so your invoices carry the correct tax wherever you do business, without manual intervention in the billing run.

With Taxation, you can control how the instellix tax engine calculates taxes for your documents. Taxes are calculated per line item, based on tax rules you configure along criteria such as performance location, customer type, and purchase item type. Time-versioned tax rule variants let you prepare legal rate changes in advance, and VAT categories and tax exemptions ensure that exempt business is documented with the correct reason on your invoices.

With Tax Provider, you decide which engine performs the calculation. By default, the instellix tax engine calculates taxes based on your configured tax rules. Where you need an external engine — for example for the United States — you can assign Avalara AvaTax per country, optionally narrowed down to a single billing group.

With VAT ID Validation, you can validate European VAT identification numbers automatically during invoice creation, in real time against the official VIES interface of the European Commission. The validation result directly influences which tax rule is applied and is stored together with the invoice document for audit purposes.

Together, these capabilities give you a single place to configure, calculate, and document taxes: the rules that determine the tax, the engine that calculates it, and the validation that proves your invoices were issued on a correct basis.