Get to Know - Tax Engine

The Customer Endpoint

This endpoint allows you to interact with the Abacus Tax engine to create and update customer records. Proper customer management is crucial for accurate sales tax calculation. It is advisable to create customer records before processing transactions for the following reasons:

Customer types can impact nexus thresholds. Learn more about customers types here.

Exempt Customers: Some customers may be exempt from paying sales tax, regardless of the Complyt engine’s calculations.

INFO

Exemptions can be update using the exemptions endpoint

Given these considerations, it is important to update customer settings before processing any transactions.

Customer Types

RETAIL

Retail customers are the end consumers who purchase goods or services for personal use and not for resale. Sales to retail customers typically include the highest sales tax rates since the goods or services are used for final consumption.

By default, the Abacus Tax Engine classifies these customers as taxable.

RESELLER

Reseller customers purchase goods or services with the intention of reselling them. These customers often qualify for sales tax exemptions or reduced rates because the tax is collected when the goods are sold to the final consumer.

By default, the Abacus Tax Engine classifies these customers as taxable.

MARKETPLACE

Marketplace customers are involved in the sale of goods or services through a third-party platform. The marketplace facilitator, rather than the individual seller, is responsible for collecting and remitting sales tax.

By default, the Abacus Tax Engine classifies these customers as Non-taxable.