How could I configure VAT for the Canary Islands and other autonomous regions outside Spain/EU?

Modified on: Tue, 21 Feb, 2023 at 8:13 PM

Scope

How to add tax for other countries?

How to configure tax for countries outside the EU region?


Summary

Since the Canary Islands is a separate autonomous region outside of Spain/EU it is available as an individual country also, this applies to other independent regions. In order to configure tax for Canary, navigate from Settings > Configure Chargebee > Taxes > Add Region. 



Solution

Before you configure General Tax, it is worth considering how you should register for tax in the country where you are selling and what factors that affect tax rates in that country including whether your product catalog is taxable in the country or not and which tax jurisdictions (federal and local) you are liable to pay taxes to.


The autonomous regions are introduced as new regions/countries as both rules and rates will be different from the parent country whereas if it is just separate tax rates within a country, hence you’ll have to configure it as a separate country/region on your Taxes in Chargebee. 


Pre-configuration checklist

Ensure you have the following information (with regard to a particular country) ready before you begin the configuration process:

  • The name of the tax or taxes you have to levy on your products

  • The rate of the tax or taxes you have to levy on your products

  • Your tax registration number

  • Tax regulations (like what your product catalog should have inclusive or exclusive prices)

  • Invoice requirements (what information needs to appear on your invoice). You can customize your invoices depending on the invoice requirements in the country where you are selling. Check out the Invoice Customization page for more.


Go to Settings > Configure Chargebee > Taxes and Add Region

Step 1: Update your organization address

Make sure you've added your organization address at Settings > Configure Chargebee > Business Profile. You cannot configure taxes in Chargebee without completing this step in your initial setup.

Step 2: Enable Tax

Go to Settings > Configure Chargebee > Taxes & Add Region


Step 2a: You can either configure it Manually or by using Avalara configuration.


Step 3: Choose your price type

Regulations are different in each country - some call for the price of your product to include tax and some for the tax to be excluded. You can choose for your price type to be either tax inclusive or tax exclusive depending on where your customers are located.

Step 3a: Consistent Pricing

If you choose for your products to have inclusive pricing, the consistent pricing option might appeal to you. If you are selling to customers across the world and would want to charge them the same price for your product regardless of the taxes applicable as per the customer's location, use the Consistent Pricing option.

Step 5: Enter your tax registration number

Enter your tax registration number and your Tax Registration Label here.

Step 6: Add your tax rates

Finally, you will need to provide a label and the tax rate that you would like Chargebee to apply to your invoices. Click here to know for more information.

Related Articles

How to configure Inclusive or Exclusive taxes in Chargebee? 

Uploading customized tax settings (CSV)

What is consistent pricing in Chargebee? 

Can I collect tax from customers outside my country?

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