This documentation is for Taxamo v1. If your account is with Taxamo v2 use the documentation at integrate.taxamo.com/doc.
If you are uncertain of your version please contact support@taxamo.com for assistance.

How does Taxamo handle subscriptions?

Taxamo makes selling subscription-based products very easy when it comes to tax calculation and evidence gathering.

You can learn more about subscriptions from this page.

When the customer makes the first purchase, you will need to create and confirm the transaction for the first sale with Taxamo as per usual. This will store all the necessary tax location evidence, and also provide you with a transaction key.

In the following billing periods (e.g. months), you need to create the Taxamo transactions again. However, you don’t have to ask the customer for evidence, you can reuse evidence (and any other field or created_date) from a transaction created at the start. You can do so by creating a new transaction with the original_transaction_key.

In addition, remember that tax rates can (and will) change over time. There are two ways to solve this problem with Taxamo:

  1. Use universal pricing by using total_amount instead of amount field - for all, or all but first transactions. This way any tax changes will not change the final price.
  2. Create a transaction in Taxamo before closing the invoice period. When creating a transaction in Taxamo, you can set order_date in the near future, so future tax rate changes (that we know of) can be taken into account. It isn’t wise to set order_date a year ahead, as tax rates can change in a short timeframe. Setting it a day or two ahead will work.