Transaction-based tax management is something that can be handled automatically within Bricknode. 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 to register a country where we are acting as a qualified intermediary.
Registering tax withholding agreements for customers
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 to use the correct percentage values for each country.