Introduction
As Anrok detects new product IDs from your billing system, it's important to assign a product type and tax category to ensure that all transactions are treated according to the appropriate sales tax rules. Anrok will only process transactions with fully configured product IDs.
Select a Product type
When configuring a new product IDProduct ID
They describe the specific product or service that was sold to your customer. Product IDs are passed to Anrok from your billing system as the product(s) you are including on the invoice.
Each product ID you sell must be mapped to a corresponding tax configuration in Anrok, which signals what taxability ruleset to apply to the product. in Anrok, you will first be asked to identify the product or service's Product type. When selecting a Product type, you will need to determine what type of customer the product or service is primarily being sold to. During selection, you will have the following options:
- B2B — A product or service primarily sold to other companies.
- B2C — A product or service primarily sold directly to consumers.
- N/A — A product or service that is non-taxable.
For non-US sales, your customer's 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.Most businesses (and other persons carrying out an economic activity) need a VAT number. will determine whether tax is applied, but setting the expectation whether the sale is expected to be B2B will allow Anrok to alert you if a VAT ID is potentially applicable but missing to a transaction. See What is a VAT Registration Number?
Select a Tax category
Once you've selected a Product type, you will then be asked to identify the product or service's Tax category. When selecting a Tax category, you will need to determine the description that best fits your product or service. Please note that jurisdictions have tax laws that vary depending on the nature of your product.
Anrok provides support for the following catalog of products and services:
| Parent Category | Sub Category | Definition |
|---|---|---|
Digital goods (Subscription) |
General | Cloud based or downloaded access to digital products not otherwise specified on a subscription basis. |
| Gaming | Cloud based or downloaded access to digital gaming services on a subscription basis. | |
| Video | Cloud based or downloaded digital video access by subscription, may include movies, television, or other video access. | |
| Photography | Cloud based or downloaded digital photographs accessible on a subscription basis by the user. May also include the photography services as part of the overall subscription price. | |
| Music | Cloud based or downloaded digital audio files sold on a subscription basis. | |
| Digital tokens/in-app purchases | Digital products purchased in-app on a subscription basis. These purchases are limited to use within the app, and are not redeemable for cash and are not a cash equivalent. | |
| Data sets | Compilations of data purchased in a user friendly format on a subscription basis. | |
Digital goods (Permanent) |
General | Cloud based or downloaded access to digital products not otherwise specified for permanent access by the user. |
| Gaming | Cloud based or downloaded access to digital gaming services, with rights of permanent use by the customer. | |
| Video | Cloud based or downloaded digital video access for permanent use, may include movies, television, or other video access. | |
| Photography | Cloud based or downloaded digital photographs for permanent access by the use user. May also include the photography services as part of the overall price. | |
| Music | Cloud based or downloaded digital audio files sold for permanent access by the end user. | |
| NFTs | Non-fungible tokens sold for permanent use, these may include digital artwork or other similar custom digital goods. Note his does not include any crypto-currencies | |
| Digital tokens/in-app purchases | Digital products purchased in-app for permanent use. These purchases are limited to use within the app, and are not redeemable for cash and are not a cash equivalent. | |
| Data sets | Compilations of data purchased in a user friendly format for permanent use. | |
People services |
Professional services - Mandatory | Non-automated, people services that are required to be purchased with a corresponding SaaS product |
| Professional services - Optional | Non-automated, people services that are sold separately and are not required to be purchased with a corresponding SaaS product | |
| General services | Non-automated, people services that may be sold on a stand alone basis. | |
| Training - Mandatory | Non-automated people services, provided remotely to train users and sold as a mandatory offering in conjunction with a SaaS product. | |
| Training - Optional | Non-automated people services, provided remotely to train users on a specific product or field. Not sold as a mandatory add on to a digital or software purchase. | |
| Implementation services | Non-automated people services provided remotely to assist purchasers in the implementation of a corresponding SaaS or digital product. | |
Digital services |
Information services | Services delivered electronically that allow information and data to be generated, acquired, stored, processed, or retrieved and delivered electronically to a purchaser |
| Data processing | Products that primarily are designed to process data provided by users into an alternate form using a computer. Data processing includes the process of entering, manipulating, or retrieving a customer's data and providing access to that data in digital format | |
| Web-hosting | Internet hosting services that hosts websites for customers. These services may include facilities for customers to create and maintain a website and email hosting services | |
| Domain name sales | Sale of IP addresses (domain names) as well as registration services associated with them | |
Cloud services |
General | Infrastructure as a service offering, providing users remote access to data center equipment and computing power. |
PaaS |
General | Cloud computing service bundles that include both the infrastructure (servers, storage, and networking) and the middleware (development tools, business intelligence services, database management systems) that provide the customer a complete development and deployment environment in the cloud |
SaaS |
General | SaaS products that do not have a unique feature that more appropriately places them into another sub-category |
| Security | SaaS products specifically purposed to provide protection of computer systems, software, or data against unauthorized access or intrusion | |
| Storage | SaaS products designed solely to facilitate the storage of digital products, digital codes, digital information or master copies of software | |
| On-prem | SaaS products that run on your customer's infrastructure. The customer is responsible for the infrastructure on which the software will deploy. It is assumed that the customer's tax address is the location of the infrastructure | |
Other |
Business expenses | Generally non-taxable pass-through expenses, with the exception of the Hawaii general excise tax. |
| Downloaded software | Prewritten, non-custom computer software that is delivered electronically for download onto customers' devices/servers. No tangible personal property (e.g. CD-ROM, etc.) is delivered or used in conjunction with the download. |