Enable tax calculation in global jurisdictions

Introduction

Enabling tax calculation in Anrok is essential for ensuring tax is calculated in global jurisdictions where you are registered and obligated to collect VATVAT
A type of transaction tax levied on goods and services in more than 170 countries. Like sales tax in the US, VAT is expected to be paid by the consumer making the purchase.
. When enabling tax calculation, Anrok allows you determine whether you would like to collect VAT from your customers or pay it yourself on the customer's behalf. See How do I get registered for VAT?

 


 

Tax calculation with VRN validation

In jurisdictions where VATVAT
A type of transaction tax levied on goods and services in more than 170 countries. Like sales tax in the US, VAT is expected to be paid by the consumer making the purchase.
is not required to be collected on B2B transactions, VRN validation must be enabled when enabling tax calculation in Anrok. This helps to ensure accurate treatment of your B2B sales after a valid VAT IDVAT ID
Also known as a VAT registration number (VRN), this is the unique number that identifies a taxable business that is registered for VAT.CleanShot 2023-08-17 at 11.41.50@2x.pngMost businesses (and other persons carrying out an economic activity) are required to have a VAT number.
has been provided by the customer. See Enable VRN validation in global jurisdictions.

When enabling tax calculation in a global jurisdiction:
  • VRN validation already enabled — If you have already enabled VRN validation and selected a VRN validation start date prior to or the same as the tax calculation start date, no changes will occur.
  • VRN validation not already enabled — If you have already enabled VRN validation and selected a VRN validation start date after the tax calculation start date, Anrok will adjust your VRN validation date to match the tax calculation start date. If you have not selected a VRN validation start date, Anrok will set your VRN validation start date to match your tax calculation start date.

Note CleanShot_2024-04-30_at_16.01.40_2x-removebg-preview.png

You can adjust your VRN validation start date to be earlier at any time to meet your business needs.

 


 

Enable tax calculation

Once you've completed registration in a global jurisdiction, you will receive your VAT registration number and filing frequency. After you've received this information, you can enable tax calculation for the jurisdiction in Anrok.

Try enabling tax calculation in the demo above ☝️

  1. In the Anrok app CleanShot 2023-07-20 at 12.02.21@2x.png, go to Jurisdictions. Take me there!
  2. Select a global jurisdiction where you are registered.
  3. Under Jurisdiction details, click View service.
  4. Under What is your VAT Registration Number (VRN)?, enter your the VAT registration number you received after registering in the jurisdiction?
  5. Under What is the filing frequency assigned to you?, enter the filing frequency assigned to you by the jurisdiction. This question will only appear for applicable jurisdictions. 
  6. Under When should Anrok begin calculating tax on transactions?, select your preferred date to begin tax calculation.

    Tip CleanShot_2024-04-30_at_15.47.03_2x-removebg-preview.png

    If you are looking to address all exposed sales on your first return, we recommend selecting the date of your initial exposure in the jurisdiction.


  7. Under Should Anrok add tax to be collected from customers on transactions?, select one of the following options:
    • Yes, at a specified date — Anrok will begin collecting tax from customers on a specified. If you select a date after your tax calculation date, any transactions that occur between your tax calculation date and tax collection date will be paid by you on your customer’s behalf.
    • No, taxes will be paid by the seller — Anrok will not begin collecting tax from customers after your official registration. If selected, for any transactions that occur, you will pay tax on your customer’s behalf.
  8. When you are finished, click Enable tax calculation.

 

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