What is Taxnexus API?
Use Taxnexus API to get accurate tax “ratings” on invoices in supported jurisdictions.
Specifically, Taxnexus API has resources and methods that:
- Lookup cannabis tax rates based on the address, type and mode of transaction
- Perform tax ratings on invoices and stores rated invoices as regulated financial transactions
- Generate regulatory filings as PDF documents.
Taxnexus API is a RESTful, HTTPS-based API that exclusively uses JSON strings and inline parameters for sending information back and forth from a client.
What is a Tax Rating?
The process of apply a tax algorithm to an invoice is known as “tax rating.” To rate an invoice means to process each line in an invoice and determine if the product or service may be taxed in the governing jurisdiction.
Tax rating algorithms generate one or more tax transaction records for each line item in an invoice. The individual transaction records, or a summary of the total of all the records, is then attached to the invoice by updating the invoice headers and subtotals.
For a tax rating algorithm to work three essential elements must be present:
- A tax situs database that uses geographic coordinates to lookup all applicable tax laws
- A product coding system that properly classifies the tax status of each product and service
- Data models that support rated invoices