What is a Tax Engine?

A Tax Engine is a technology solution designed to automate and simplify the process of calculating taxes. It determines the correct amount of indirect taxes for a transaction, like Sales Tax in the US and Value Added Tax (VAT) or Goods and Services Tax (GST) in the rest of the world.
The determination of the tax treatment of any given transaction is based on logical rules set up in the tax engine – and these rules are abstracts of tax legislation and regulations that consider relevant transaction variables to get to the desired outcome.
⛔️ Problems it solves
❗️Consequences of not using a Tax Engine
- Undercharging tax
- Overcharging tax
- Reputational risk
FAQ
- What countries do you cover?
- Do you integrate with PSPs?
- What is the average latency for tax calculations?
- What data does your Tax engine require?
- What is the output of your tax engine?
- How is your tax engine different from other tax engines?