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Overview of Tax apps

Zuora

Overview of Tax apps

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Zuora's Tax app offers a pre-built integration that can efficiently deal with various tax types and rules. The Tax app connects you to the tax vendors that hold the up-to-date tax rate data for numerous sales tax jurisdictions globally and eliminates the need for manual updates. You can use the Liquid Template Language to customize templates. The customization allows the dynamically created requests to be sent to your tax vendor in order to automatically calculate the correct tax rates for invoices, with various account tax conditions, customer locations, and tax types and rules taken into consideration. With this app, Zuora makes it easier to integrate your existing tax services with our world-class subscription relationship management solutions. 

Zuora’s tax integrations fall into two main categories:

  • Direct Integration Tax Apps - These are native integrations that are set up and managed entirely within Zuora Billing via the Tax Engine UI, without the need for Zuora Connect.

  • Marketplace Apps - These are tax apps available through the Zuora Connect platform and require setup in both Connect and Zuora Billing.

Notes and limitations

  • Only billing users with the Admin permission can access configurable tax apps in a Zuora tenant.

  • If you use the configurable Tax app, Zuora calculates tax when invoices are posted. Draft invoices generated by bill runs do not contain tax calculations.

    If the tax calculation fails for a particular invoice, the invoice will remain in draft status. This behavior is different from the behavior of Zuora's direct Avalara integration. See Direct Avalara integration.

  • The Configurable Tax app does not return tax information for invoice item adjustments. The only method of AR supported by the configurable Tax app is Invoice Settlement (Credit Memos and Debit Memos). 

  • When using Configurable Tax Apps, Zuora generates draft invoices without tax during bill runs. However, for Z-Tax and Avalara Direct Integration, draft invoices always include tax information.

  • Maximum taxable line items supported in a single tax call (Overall, Zuora’s configurable tax apps can support a maximum of 15,000 line items, but tax vendors have their specific limitations as shown below. If you have confirmed with your tax vendor that a higher number of items can be processed in a timely manner (within 120 seconds), submit a request at Zuora Global Support and ask to test a higher limit.):

    • Avalara AvaTax for Sales: 1000 
      Note: By default, the limit per invoice is 1000, but Zuora can coordinate with Avalara to raise it to 15k on a case-by-case basis, at no additional charge.
    • Avalara AvaTax for Communications: 10,000 
    • OneSource Determination: 5,000 
    • Vertex O Series: 5,000
    • Vertex Advantage: 3,000

  • Usage records (for location-based tax) are not visible to the connector.

  • Currently, tax vendors don’t return the exempted tax amount to Configurable tax apps when the product price is tax-inclusive and the customer is exempt from tax. Therefore in such cases, the invoice item amount will be the tax-inclusive amount and the tax amount will be 0. 

  • We do not support password management tools like LastPass or Dashline while configuring a new Connect Tax Engine.