How is the tax validation performed in Anrok integration?

Problem Statement

This article helps you understand how is the tax validation performed in anrok integration.

Scope

What are the fields mandatory for new customers on Anrok tax validation?

How Anrok performs tax validation for existing customers?

After the tax validation, how to update the VAT ID on the customer's page?

Summary

For new customers, we must enable mandate fields for tax validation on hosted pages, whereas for existing customers Anrok can perform a validation on which you can manually update the required fields for Anrok tax validation.

New Customers

• Navigate to Settings > Configure Chargebee > Checkout & Portal > Fields and enable the Shipping/Billing Address fields.
• Mark the Zip Code, Country, and State fields as mandatory in the hosted pages.

Existing Customers

• Click Apps > Go to Marketplace > Tax Management > Anrok > Validating Addresses for Existing Customers > Run Check

Solution

New Customers' Address for Tax determination:

• For physical goods, Chargebee uses your customers' shipping addresses to calculate tax. If the shipping address is unavailable, the billing address is used.

• For digital goods, Chargebee uses your customers' billing addresses to calculate tax.

• If you're using Hosted Pages, ensure you set up the following:

  • Navigate to Settings > Configure Chargebee > Checkout & Portal > Fields and enable the Shipping/Billing Address fields.
  • Mark the Zip Code, Country, and State fields as mandatory in the hosted pages.

Validating Addresses for Existing Customers

The Chargebee-Anrok integration validates the taxable address for all new customers who subscribe to you after enabling Anrok. For customers who have signed up before enabling Anrok, Chargebee will cancel their subscriptions during renewal if the tax cannot be determined. Subscriptions on the verge of cancellation can be determined using the Validate Existing Addresses feature that allows you to view and fix invalid addresses.

Under Validate Existing Addresses, select your taxable region - United States from the drop-down, and click Run Check.

During the first check that is run after the integration is configured, all the existing subscriptions' taxable addresses get validated. Subsequent address validations will check only the addresses that are added after prior validation and not all the addresses. You can look for any possible address errors and have them fixed.

In order to validate the address, Chargebee makes a taxability API check to validate if the address is taxable.

How to add a VAT ID to a customer record

A VAT ID can be added to a customer record in Chargebee by taking the following steps:

• Navigate to Settings -> Configure Chargebee
• Select Taxes
• Select the region associated with the VAT ID you are adding (US Region or other applicable regions)
• Toggle Collect Tax Registration Number from Customers
• There's now a Tax Reg Number field on the customer page (Edit/Change Customer details page)
  

Multiple VAT IDs may be associated with a single customer, Anrok will see the applicable VAT ID for the country to which the transaction applies.