Tax

RevKeen integrates with Quaderno to automate tax calculation, collection, and reporting. Whether you need to handle VAT, sales tax, or GST, the tax system applies the correct rates at checkout and keeps your reporting up to date.

How Tax Works in RevKeen

Tax calculation happens automatically at key points in the payment lifecycle:

1. At checkout -- When a customer reaches the payment page, RevKeen determines the applicable tax rate based on the customer's location, your business location, and the product type.
2. On invoices -- Tax is calculated and itemized on every invoice, showing the tax rate, taxable amount, and tax total.
3. On subscription renewals -- Each renewal recalculates tax in case rates or customer details have changed.

Quaderno Integration

RevKeen uses Quaderno as its tax engine. Quaderno handles:

• Tax rate lookup -- Determines the correct VAT, sales tax, or GST rate based on jurisdiction
• Tax validation -- Validates VAT numbers for B2B reverse-charge transactions in the EU
• Tax receipts -- Generates compliant tax invoices and credit notes
• Tax reporting -- Aggregates tax collected by jurisdiction for filing

Supported Tax Types

Tax at Checkout

When a customer checks out, the tax calculation follows these steps:

1. Customer enters their billing address (or location is detected)
2. RevKeen sends the product, amount, and location to Quaderno
3. Quaderno returns the applicable tax rate
4. The tax amount is displayed to the customer before payment
5. The total (amount + tax) is charged

For B2B transactions in the EU, customers can enter their VAT number. If valid, the reverse-charge mechanism applies and no VAT is collected.

Tax on Invoices

Every invoice includes tax details:

• Subtotal -- Amount before tax
• Tax rate -- The percentage applied
• Tax amount -- Calculated tax
• Total -- Subtotal + tax

Tax is shown as a separate line item so customers see exactly what they are paying.

Tax Reporting

Quaderno aggregates all tax collected and provides reports by jurisdiction. Use these reports to:

• File VAT returns in EU countries where you have obligations
• Report sales tax collected by US state
• Track GST obligations in applicable countries

Setup

To enable automatic tax calculation:

1. Go to Settings > Integrations
2. Connect your Quaderno account
3. Configure your business tax details (tax ID, business address, registration numbers)
4. Set product tax categories (digital services, physical goods, etc.)
5. Enable tax calculation on your checkout links

Once configured, tax is calculated automatically on all new transactions.

Tax Exemptions

Some transactions may be tax-exempt:

• B2B with valid VAT number -- Reverse-charge applies in the EU
• Tax-exempt customers -- Customers with exemption certificates
• Exempt product categories -- Certain goods or services may be exempt in specific jurisdictions

To mark a customer as tax-exempt, update their profile in the customer settings.