The service supports the following features and functionalities.

Location evidence

For more information, see Location Evidence.

Support business-to-business transactions and validation

A business-to-business (B2B) transaction may qualify for a tax exemption, depending on the applicable tax rules. For example, a sale for resale to a registered business customer may be exempt from sales tax. The service supports B2B transactions and provides tax identification number validation to verify the customer's tax identification number.

When tax is not charged on a qualifying B2B transaction, the business customer is typically responsible for reporting the tax under a reverse-charge mechanism. To qualify, the customer generally must provide a tax identification number issued by the local tax authority. The service validates the tax identification number by using the API endpoint.

Depending on the country or region, the service either validates the tax identification number against an official tax authority database or verifies that it matches the required format and syntax.

Some countries require the customer to acknowledge a self-declaration before claiming a tax exemption. A business can also display the customer's tax identification number on the invoice.

For more information, see Vertex Validator.

Support global indirect tax calculation

The service helps businesses determine and calculate tax due on physical and digital goods in supported countries and regions. Integrate the service with the checkout experience to help maintain tax compliance.

For more information, see Supported Countries and Regions.

Set tax-inclusive and tax-exclusive pricing

The service supports both pricing models:

• Tax-inclusive pricing (common in regions like the European Union)
• Tax-exclusive pricing (common in the United States)

With tax-inclusive pricing, the merchant can offer a single price across supported countries and regions by including tax in the listed price. Send the tax-inclusive amount in the total_amount field. The service calculates the tax and returns the tax-exclusive amount (amount), the calculated tax (tax_amount), and the tax-inclusive amount (total_amount).

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Note:

A B2B transaction uses different behavior than a business-to-consumer (B2C) transaction. When using tax-inclusive pricing, the service recalculates the total_amount field to remove the tax that would have been applied to a B2C transaction. Override this behavior in the account settings.

With tax-exclusive pricing, the merchant can set prices independently for each country or region. Send the pre-tax amount to the service, and then the service returns the calculated tax_amount and total_amount.

Vertex Invoice IQ

For more information, see Vertex Invoice IQ.

Vertex Validator

For more information, see Vertex Validator.