Automated tax calculations

Understand how automated tax calculations work.

When you create a checkout using the Checkouts endpoint, Digital River automatically calculates the taxes due on items in the checkout using the following data points:

  • The specific SKUs in an order

  • The ship from address

  • The ship to address for physical products

  • The billing address for digital products

  • The purchase location address if neither the previous two addresses are supplied

Example: If you have a guest user on your Italian site and you want to present them with a tax calculation prior to their providing a ship to address include the purchaseLocation parameter in your request.

Important: You may either pass the ship to address directly or attach a customer with a valid shipping address in the checkout.

Digital River determines the appropriate amount of taxes using the information provided and adds the tax amounts to the checkout in the response.

Setting up SKU tax codes

Digital River bases its tax calculation on the SKU taxCode.

cURL
cURL
curl https://api.digitalriver.com/skus \
-u sk_test_db9682a2-b04a-4e94-8e11-35fe8ec0b324: \
-d id="5823594809" \
-d name="Athena Womens Running Shoes" \
-d eccn="9E003" \
-d taxCode="531029.2" \
-d manufacturerId="20013" \
-d weight="20.5" \
-d weightUnit="oz" \
-d partNumber="SWG1224J10L"

The Checkouts endpoint also supports tax exemption for business transactions. Set the tax identifier on the Digital River Customer object like this:

cURL
cURL
curl https://api.digitalriver.com/customers/fd74a5c5-0163-469a-ae8e-031f0259b576 \
-u sk_test_db9682a2-b04a-4e94-8e11-35fe8ec0b324: \
-d taxIdentifiers[uk]="GB999 9999 73"

Create or update a Checkout with the customer identifier, and Digital River will use the tax identifier to calculate the appropriate tax amount.

Tax identifiers

You can add one or more tax identifiers to a customer. Digital River will automatically validate some tax identifier types (see table below), and, if verified, will reverse any tax charges.

The same tax identifiers shall appear in the header of the customer tax invoice and credit memo PDFs.

Digital River supports the following tax identifier types:

Country

Enum

Description

Austria

at

VAT Number

Belarus

by

VAT Number

Belgium

be

VAT Number

Brazil

br

Cadastro Nacional da Pessoa Jurídica

Brazil

br_ie

Inscrição Estadual

Brazil

br_natual

Cadastro de Pessoas Físicas (individuals)

Bulgaria

bg

VAT Number

Croatia

hr

VAT Number

Cyprus

cy

VAT Number

Czech Republic

cz

VAT Number

Denmark

dk

VAT Number

Estonia

ee

VAT Number

Finland

fi

VAT Number

France

fr

VAT Number

Germany

de

VAT Number

Greece

gr

VAT Number

Hungary

hu

VAT Number

Iceland

is

VAT Number

India

in

GST ID

Ireland

ie

VAT Number

Italy

it

VAT Number

Italy

it_cf

Codice Fiscal (individuals)

Italy

it_natural

VAT Number (individuals)

Japan

jp_offshore

Consumption Tax ID (offshore)

Korea

kr_offshore

VAT Number (offshore)

Latvia

lv

VAT Number

Lithuania

lt

VAT Number

Luxembourg

lu

VAT Number

Malta

mt

VAT Number

Netherlands

nl

VAT Number

New Zealand

nx

GST ID

Norway

no

VAT Number

Poland

pl

VAT Number

Portugal

pt

VAT Number

Romania

ro

VAT Number

Russia

ru

VAT Number

Slovakia

sk

VAT Number

Slovenia

si

VAT Number

Spain

es

VAT Number

Sweden

se

VAT Number

Switzerland

ch

VAT Number

Taiwan

tw

Unified Business Number

Taiwan

tw_offshore

Unified Business Number (offshore)

Turkey

tr

VAT Number

Unitied Kingdom

uk

VAT Number

United Arab Emirates

ae

VAT Number