Collecting Taxes

By default, Tilia does not collect taxes or pay taxes on your behalf. However, you can include additional line items in your invoices to charge your customers the requisite taxes.

To add tax to a transaction

The exact steps for calculating and collecting taxes depends on your environment. In general, the process is as follows:

1. Determine if the tax applies to a specific line item or items, or to the invoice as a whole.
2. Decide if the tax should be presented as a single line item or multiple line items.
3. Calculate the tax amount to be collected.
4. Create a line item for each tax item you wish to include. The transaction_type for these line items should be user_to_integrator.

For example, to collect 10% tax on two line items, one for $7.00 and another for $3.00, you could add a tax line item for $1.00 (($7.00 + $3.00) * .1) = $1.00) to the invoice.

Example line item

  "line_items": [
    {
      "amount": 100,
      "currency": "USD",
      "transaction_type": "user_to_integrator",
      "reference_type": "your_reference_type",
      "reference_id": "your_reference_id",
	  "product_sku": "your_tax_sku",
	  "description": "%% tax for <item>",
	  "metadata": "<any json object>"
    }