Configuring custom taxation

This handbook shows how to configure tax calculation using the Custom taxation plug-in. It is useful when standard VAT calculation does not cover your tax requirements (e.g., when different charge types or different subscriptions are subject to different tax rates).

Owl Telecom is a service provider that offers voice, SMS, data, and IPTV services. Local tax regulations impose a 21% VAT rate for most services, but apply a reduced rate of 9% to TV broadcasting services. Owl Telecom needs to apply these rates across their customer base.

1. Create customized taxes
2. Enable taxes for the customer or customer class
3. Create tax transaction codes
4. Assign tax transaction codes to all chargeable entities

1. Navigate to Financial > Taxation > Customized taxes.
2. Click + Customized tax and fill in the details for the first tax:
   • Name – enter a name, e.g., "VAT 21%".
   • Rate – enter 21.
   • Applied to – select All charges.

     

3. Click Save.
4. Click + Customized tax again and fill in the details for the second tax:
   • Name – enter a name, e.g., "VAT 9% IPTV".
   • Rate – enter 9.
   • Applied to – select All charges.

     

5. Click Save.

You can enable taxes at the customer class level (applies to all customers in the class) or override them for a specific customer.

To enable taxes at the customer class level:

1. Navigate to Sales > Customer classes and open the customer class page.
2. Click Finances > Taxation.
3. Enable both VAT 21% and VAT 9% IPTV taxes.

   

4. Click Save.

1. Navigate to Financial > Taxation > Tax transaction codes.
2. Click + Add and fill in the details for the first code:
   • Code – enter the tax transaction code (e.g., 1).
   • Code description – enter a short description to identify the code (e.g., "Standard VAT 21%").
   • Customized tax – select VAT 21%.
   • % of charge that is subject to VAT 21% – enter 100.

     

3. Click Save.
4. Click + Add again and fill in the details for the second code:
   • Code – enter the tax transaction code (e.g., 2).
   • Code description – enter a short description to identify the code (e.g., "Reduced VAT for IPTV 9%").
   • Customized tax – select VAT 9% IPTV.
   • % of charge that is subject to VAT 9% IPTV – enter 100.

     

5. Click Save.

Assign a tax transaction code to every service and subscription:

• Voice, SMS, and data services usage – tax transaction code 1 (21%)
• All subscriptions except IPTV – tax transaction code 1 (21%)
• IPTV subscription – tax transaction code 2 (9%)

To assign a tax transaction code to a service:

1. Navigate to My company > Service catalog and open the service page.
2. In the Tax transaction code field, select the corresponding code (e.g., 1).

   

3. Click Save.

To assign a tax transaction code to a subscription:

1. Navigate to My company > Subscriptions and open the subscription page.
2. In the Usage tax transaction code field, select the corresponding code (e.g., 2 for the “IPTV” subscription).

   

   If the subscription has a separate activation fee or cancellation fee that requires a different tax rate, enter the corresponding codes in the Activation tax transaction code and Cancellation tax transaction code fields.

3. Click Save.