Tax Engine

Set up Connect Tax Engines

To set up a Connect Tax Engine:

1. In your Zuora tenant, click your username at the top right and navigate to Settings > Billing.
2. Click Setup Tax Engine and Tax Date.
3. Select Connect Tax Engine from the list, and click setup new tax engine. Note that you can create at most 10 Connect Tax Engines.
4. In the Basic Information area on the Setup Tax Engine page, specify the basic information for the new tax engine:

• Name: Name the Connect Tax Engine you would like to use in Zuora. For example, Avalara Brazil, India Local Tax, Avalara Telco, etc.
• Connect Token: Enter the unique 32-character API Token of the Tax app. To obtain your API Token:

1. Access the app through Setup Tax Engine and Tax Date under Billing settings.
2. Navigate to the APP INFORMATION tab, the API token is listed near the top of the tab. 

5. In the Custom Fields sent to Open Tax Connector area, select all the custom fields that you want to use in the tax request for tax calculation. Failure to select them will result in that blank values are used in the corresponding Liquid objects. See Manage custom fields for more information.
   The maximum number of custom fields you can select varies depending on your Zuora edition or Zuora modules. For more information, see Zuora Editions and Zuora Modules.
6. Click save to save the configurations.
7. In the Company Information area, add at least one Company Code to activate a tax code.

After completing the previous steps, you can click back to Tax Engine list to view the Connect Tax Engine you just created. If you want to modify it, click Edit. If you want to remove it, click Delete.

Set up taxation codes

To set up a tax code that uses the Connect Tax Engine:

1. Click your username at the top right and navigate to Settings > Billing.
2. Click Setup Taxation Codes.
3. Click add new tax code.
4. In the Basic Information area, complete the tax code details:

• Tax Code Name: Enter the name of the tax code to be selected in the product catalog when discerning which Connect Tax Engine the charges will use to calculate tax.
• Use Multiple Connect Tax Engines: Select this checkbox if you want to use multiple Connect Tax Engines.

  Selected	Not selected
  Tax Engines: Fill in the Mapping Formula tab with mapping rules which define how to select different Connect Tax Engines to handle tax calculation for various customer accounts. Refer to the Example tab to copy and customize pre-defined mapping formulas. See Tax Engine Mapping Formula for more information.	Tax Engine: Select the name that you have specified for the Connect Tax Engine. External Company Code: Select the company code created when setting up the Connect Tax Engine.

• Active: This is No by default. You will activate it later.
• Description (Optional): Describe the tax code and the tax app that will be used for future reference.

5. Click save.
6. Click Activate to ensure the tax code is present in the product catalog.

Activate tax code in product rate plans 

To activate the tax code in your product rate plans:

1. From the left-hand navigation of the Zuora UI, click Product Catalog.
2. Click the name of the product where you want to change its rate plan.
3. Select an existing rate plan or create a new rate plan to use the tax code. See the following articles for more information:

• Add a Product and Rate Plans
• Edit a Product, Rate Plan, or Product Rate Plan Charge

4. Hover over the title and click Edit to edit the rate plan. 
5. Complete the details in the Taxation section of the selected rate plan:

• Taxable: Select this check box to enable the rate plan to be taxable.
• Tax Mode: Select the desired tax mode:
  • Tax Exclusive: Tax is excluded from the charges.
  • Tax Inclusive: Tax is included in the charges.
• Tax Code - Select the desired tax code in the dropdown list.

6. Click save.