| Banqup Tax Service | An independent tax calculation engine that determines the correct VAT/indirect tax treatment for transactions by processing invoice data in real time. |
| Country Store | A centralized Banqup service providing country codes, tax rate categories, tax rates, and tax ID formats for use in tax determination. |
| Country ISO Codes | Standard identifiers for countries (ISO 3166-1 alpha-2) and, where needed, subdivisions (ISO 3166-2) used across the Banqup ecosystem. |
| Country trade groups | Defined memberships of countries or subdivisions in trade areas such as the EU, stored with start and end dates for tax relevance. |
| Custom rules | Optional user-defined rules in the tax engine to handle unique business scenarios, missing data, or reporting requirements. |
| Data mapping | The process of matching a company’s data fields to the API fields required by the Tax Service. |
| Product mapping | Linking products or services to tax-relevant classifications in the tax engine to ensure product level tax content is accessed during the tax call. |
| Regular expressions (Regex) for tax IDs | Validated formats stored in the Country Store to check whether tax IDs are correctly structured during a tax call. |
| Tax automation | Using software and APIs to determine, calculate, and validate tax without manual intervention. |
| Tax calculation or tax determination | The automated computation of the correct VAT treatment for a transaction based on submitted data. |
| Tax configuration | The setup activities needed to tailor the tax engine to a company’s business model, including tax codes, product mapping, and custom rules. |
| Tax drivers | Critical fields that determine tax outcomes, such as product codes, territories, seller and buyer information etc.. |
| Tax engine | The core logic of the Tax Service that processes data through validated tax rules and returns the correct VAT result. |
| Tax rates/Rate categories | Country-specific VAT percentages (standard, reduced, zero, etc.) maintained and updated in the Country Store with effective dates. |
| Tax validation | Confirming the accuracy of tax already calculated on invoices before sending or processing them. |
| Transaction testing | Running business scenarios to verify expected tax outcomes and ensure compliance before going live. |