### Enabling Taxation

To use the Parallels Business Automation - Standard taxation, it is necessary to create tax rates and specify tax zones including the default tax zone. The default tax zone should define the tax rate applied to the customers orders in case no special tax zones are defined for a buyer's country or account.

In addition, you can enable the tax exemption. The mode where taxes are not calculated for an account is called tax exemption. This feature is available for customers that reside in the other countries than your HSP company, but particularly supported by European Union members due to certain peculiarities of EEC taxation.

To configure and/or enable taxation:

1. Click Taxation Manager on the Billing Director submenu.
2. Select Setup from the Taxation Manager submenu. The taxation general settings appear on the screen.
3. Click the Edit button.
4. Configure taxation:
   1. You can check the Enable taxation box to enable taxation (assign a particular tax rates in accordance with the customer's country).
   2. Set the order of taxes calculation. In case a number of tax rates are to be applied, this can be important, because the total amount differs depends on the way taxes are applied. To calculate taxes one-by-one, when the next tax rate is applied to the balance remaining from the previous tax rate calculation, check the The previous taxed amount is the basis for the next tax calculation box. To calculate each tax from a total amount, clear this box.
   3. You can select the Default tax zone to apply taxes (if needed) to the customers' orders if no tax zone was created for the customer's country.
   4. If you do not want to show taxed prices in your store, set the option button to HP prices do not include taxes. In this case, the net prices will be shown and the tax rate to be applied will correspond to the tax zone selected from the Tax zone to be mentioned drop-down menu located at the bottom of the form.
   5. You can show the taxed prices in your HSPstore. This means that after a customer places an order, the price will stay the same, but will be splitted into a Hosting Plan price and tax amount calculated according to a customer tax zone. To this effect, check the Prices in the hosting plans include all the taxes box. For example, if a hosting plan setup fee shown is 100 and a customer tax zone corresponds to 25% tax rate then in the order it will look like 75 setup fee + 25 tax =100. If a customer tax rate is 10% then the price in order will look like 90 setup fee +10 tax = 100. Thus, in this case the price differs depending on the tax rate applied, but the total amount always the same as shown in store price list.
   6. If a special tax is to be applied to customers that reside in your country, you can configure a so-called native tax zone and apply it to your prices in store. To this effect, set the option button to HP prices include taxes from the native tax zone and select this native tax zone from the Native tax zone drop-down menu.
   7. In the Tax exemption section of the form, you can check the Enabled box to enable using the VAT numbers based tax exemption in your store.
   8. For EU customers the VAT number is always checked in respect to the correspondence of the VAT number entered by a customer to the country specified in the customer account profile. This check just does not allow a EU customer to enter an invalid code in the store. You can set the automated approval mode of the VAT number for EU customers in case the check had shown that the code does correspond to the customer country of residence. To this effect, check the Automatically approve VAT numbers conforming to Validation Rules box.
   9. If you use tax exemption in your store, please enter your own VAT number into the Your VAT number field to be able to exempt your customers from taxes.
   10. You can define how the customers orders will be processed in case the Tax Exemption is enabled. Customers' orders can be placed in the Documents for Approval queue until a customer's VAT number or customer's address, or both will be checked and approved by you. Please select the needed option(s) by checking the relevant boxes in the Prevent orders from being paid until following information is approved section of the form.

       Note 1: If you set the secure taxation mode (i.e., leave documents in "Documents For Approval" queue until the Code and/or customer's address is checked as this described above), then it will be not possible to process the order manually until you open the customer's account details and change the VAT number (and/or address) status to "Approved".

       Note 2: If taxation is in the secure mode, but your customer had selected the offline payment method, then such an order will not be placed into the Documents for Approval queue (look for such an order in Billing Director - Receivable - Documents lists). However, it will be not possible to apply the offline payment to such an order until you approve the address and VAT number.

   11. You can check the Display information about taxes box to show at your HSPstore frontpage the footnote like: 'The prices are taxable. The actual tax rate may vary depending on your country of residence'.
   12. If most of your customers reside in the same country, you can select the default tax zone for your HSPstore. In this case, you should check the Display information about taxes box as this is described above and select the tax zone from the Tax zone to be mentioned drop-down menu. For example, if you apply the native tax zone, you can select it to be mentioned.
5. Click the Save button.

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