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Staying on top of subscription tax updates within Recurly

July 10, 2024

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Taxes are just as dynamic as subscriptions. The landscape constantly evolves, bringing new updates you must grasp to ensure compliance and optimize operations. Managing sales taxes can be daunting, and for businesses that operate across multiple regions, this risk of non-compliance is magnified.

Recurly, in partnership with Avalara and Vertex, helps ensure you assess and collect taxes correctly. Here’s a concise summary of Recurly's latest changes and updates for taxation.

Specific tax codes for in-the-box taxes

Merchants using Recurly's in-the-box tax solution can now add a specific tax code to their plans, add-ons, and items. This enhancement provides you with the ability to apply more precise tax amounts to products based on your location and type of goods sold. Learn more in our product documentation.

Taxable address overrides for charges

Recurly's Elite plan merchants can set distinct taxable address configurations for one-time charges via UI and API. These settings would override the taxable address settings from the Business Entity that would otherwise be applied to the invoice. Learn more in our product documentation.

Taxable address control

Control which taxable addresses from each invoice to send your tax service based on your business entity's configurations. This empowers you to determine whether to charge customers tax based on your entity tax address, or your customer's location. Learn more in our product documentation.

Support for multiple business entity invoice mapping to Vertex

Recurly customers on Elite plans can create mappings between their Business Entities and Vertex Company and Divisions to enable entity-specific invoice filing within their Vertex instance. Learn more in our product documentation.

Customer tax ID and VAT validation

We’ve expanded the list of countries and regions where Recurly supports customer VAT/Tax ID number validation or format checks to better support our B2B customers. This functionality helps prevent customers from committing fraud and reduces the risks of businesses being incorrectly liable for paying taxes on invoices when customers enter invalid tax ID number information. Learn more in our product documentation.

Pro tip: Our Release Notes section is your go-to place to catch up on the meaningful changes we have rolled out–besides tax updates. Stay in the loop with the incremental improvements making your experience smoother.

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