Rate Based Tax Service

Tax service that performs tax calculations based on tax rates and categories defined within Work 365.

Tax service that performs tax calculations based on tax rates and categories defined within Work 365. A tax service is a collection of rates and rules that decide how tax is calculated in Work 365.


More than one instance of a Rate Based Tax Service can be created

When dealing with more than one tax jurisdictions, it is entirely possible that a partner maybe subject to more than one set of taxation rules. In such cases, multiple tax services can be used to determine how the tax is computed.

This type of tax service can be configured as follows

FieldDescriptionRecommended Value
NameA name for the tax service to uniquely identify this service.
EnvironmentReserved for future use.Production
Primary AddressThe address associated with the Partner business. In case there are multiple tax services, each service may have a primary address based on the location of the primary address.
Write-In Tax CategoryThe tax-category to be used when a Write-In line is encountered on the invoice. applies to Uses Rates directly = NO
Default Tax CategoryThe tax category to be used when a tax category match cannot be found for the invoice line item. applies to Uses Rates directly = NO
Calculate tax based onIndicates whether the tax calculation is based on the customer's shipping address or billing addressBilling Address
Round to decimalDetermines how many decimal places to round up to when performing tax calculations2
Use rates directly!important see note below
Tax RegionIndicates if a tax differentiation occurs at a State or Country level.
Apply tax to overseas transactionsIndicates if tax should be calculated when a customer's address is in a different country than the Partner's primary address.

The Use rates directly field for Rate Based tax service is extremely important. It dictates if a single rate is applied to all line items on the invoice (certain items can still be non-taxable) or if each line warrants an independent tax rate.

When Use rates directly is set to "Yes", taxation on the invoice is calculated based on the tax rate group defined on the billing contract.


When using a single rate across the whole invoice (e.g. VAT, GST); set the Use rates directly field to Yes.

In cases, where this is set to "No", each line will have tax calculated individually based on the rate applied at the associated product. In order to set this up, the following steps must be completed.

  1. Ensure that the appropriate tax categories are created.
  2. Assign the tax category to each product.
  3. Associate tax categories to the tax service (each category will have a rate defined).