Transaction-based tax management is something that can be handled automatically within BFSBricknode. There are a few areas where we need to pay attention, these are:
Designating the House as a qualified intermediary
Registering Tax Withholding Agreements for customers
Setting up Country Tax Rates
Setting up Cross-Border Tax Rates
Registering the House as a qualified intermediary
If we are NOT registered as a qualified intermediary for a country we are not entitled to manage tax withholding for that country and thus our customers will be subject to double taxation. If we are registered as a qualified intermediary we can register that in BFS by navigating to the House View.
...
Then select Tax Management.
...
We will Click on Create in the top right corner in order to register a country where we are acting as a qualified intermediary.
Registering tax withholding agreements for customers
In order for For BFS to manage source taxation automatically for customers we need to have customers sign a tax withholding agreement for the relevant country.
Navigate to the customer and then select Tax Withholding Agreements.
...
Click Create in the top right corner to add a new country.
We can now progress and set up Country Tax Rates and Cross-Border Tax Rates in order to use the correct percentage values for each country.