Orb provides one-click integrations with tax providers in order to ensure compliance for your business. We recommend and integrate with solutions like TaxJar, Avalara’s AvaTax offering, Sphere, and Anrok which automatically maintain tax rates per nexus, preventing you from having to keep up to date with changes to the tax code or your tax obligations which can vary based on your sales. These tools also provide tax filing and reporting functionality, and being connected with your billing provider prevents data entry errors in this process.
Orb’s integrations with these tax providers provides the following functionality:
Note that the tax calculation will reflect on both the Invoice portal as well as the invoice PDF.
If your customer has a tax ID that is required to be displayed on an invoice, you can set the Customer Tax ID on the Customer. Any draft invoices will display the customer’s current tax ID. Any issued invoices will save the customer’s tax ID at the time of issuance onto the invoice, which cannot be changed.
When your account is integrated with Anrok, all of your invoices will be automatically enriched with Anrok-sourced tax amounts. The Orb integration with Anrok supports computing tax for non-US based obligations like VAT.
Orb’s integration with Anrok syncs invoice amounts to Anrok for computing tax, applying the tax amounts to the Orb Invoice, and reporting tax to Anrok so it can be used in filing procedures. When an invoice is eligible to be issued, Orb will create an ephemeral transaction in Anrok. When an invoice in Orb transitions to a status of paid, Orb will create the transaction in Anrok. This marks the transaction to be reported to a tax authority in Anrok.
For each transaction, Orb will also send the customer address in order to accurately compute tax based on your defined jurisdictions in Anrok. Anrok will compute the tax per invoice, returning the data to Orb, which Orb will use to enrich tax information for downstream use in executing external charges or external invoice syncs.
The transaction in Anrok will include the amount per line item, as well as the specified tax code to use for tax computation purposes. In the case that the Orb Invoice has a line item level minimum or discount, Orb will sync these as separate line items to Anrok. Line item discounts are always reflected in Anrok as negative line items.
products
in Anrok, that associate a tax configuration to each product that you sell in Orb. You’ll need the IDs for these products when configuring the Anrok integration in Orb.{sellerId}/{apiKeyId}
Because different jurisdictions may tax items at different rates, you must also register the type of product in your Anrok instance. To do this, visit the “Product IDs” section of your Anrok account. You will need to create a unique Anrok Product for each type of product you sell. Note that one product in Anrok may be tied to multiple external product IDs for products of the same type.
Orb supports tax code configuration per item used in Orb. Items represent a sellable product or service in Orb and are used during external syncs to ensure that invoice line items in Orb are correctly mapped to any accounting or tax services you rely on from these providers and are correctly handled.
To configure your Anrok tax code mappings, navigate to Settings > Items > Item name > edit. Fill in the External item ID box with the correct ID for the product created in Anrok.
Anrok requires each customer in Orb to have a valid shipping address. If a shipping address is not present, Orb will use the billing address for the purposes of tax calculation. In the case of an invalid or missing address, Orb will fail invoice issuance, and notify you in the dashboard of any failed invoices:
Customer addresses can be set via the API or via the dashboard from the customer details page.
In the case of a customer that qualifies for tax exemptions, you need to create a Certificate for the customer in your Anrok dashboard. The customer ID specified in Anrok should be the same as the Orb customer ID, so the exemption is used when reporting to Anrok.
If a customer has a tax ID configured in Orb, we will send that ID to Anrok when calculating and reporting tax. This can be used to determine if the transaction is subject to a reverse charge for eligible VAT countries.
The customer tax ID can be set via the API or via the dashboard from the customer details page.
When your account is integrated with Avalara, all of your invoices will be automatically enriched with Avalara-sourced tax amounts.
Orb’s integration with Avalara syncs invoice amounts to Avalara for computing tax, applying the tax amounts to the Orb Invoice, and reporting tax to Avalara so it can be used in filing procedures. When an invoice is eligible to be issued, Orb will sync the invoice as a SalesInvoice
document to Avalara as a new transaction. When an invoice in Orb transitions to a status of paid
, Orb will commit
the transaction in Avalara. This marks the transaction to be reported to a tax authority in Avalara, for more information, see the Avalara docs here.
For each document, Orb will also specify the ShipTo
and ShipFrom
addresses in order to accurately compute tax based on your defined Nexus’ in Avalara. Avalara will compute the tax per invoice, returning the data to Orb, which Orb will use to enrich tax information for downstream use in executing external charges or external invoice syncs.
The document in Avalara will include the quantity, rate, and amount per line item, as well as the specified tax code to use for tax computation purposes. In the case that the Orb Invoice has a line item level minimum or discount, Orb will sync these as separate line items to Avalara. Line item discounts are always reflected in Avalara as negative line items.
ShipFrom
address in Avalara. This can be set from the Orb dashboard under Settings > Invoices.nexus
states you may be obligated to collect and remit taxes in.Orb allows a few controls for how Avalara is used in the invoice issuance process.
Orb supports tax code configuration per item used in Orb. Items represent a sellable product or service in Orb and are used during external syncs to ensure that invoice line items in Orb are correctly mapped to any accounting or tax services you rely on from these providers are correctly handled.
To configure your Avalara tax code mappings, navigate to Settings > Items > Item name > edit.
The external items dropdown is populated by Avalara’s comprehensive list of tax codes, which can be found here.
Avalara requires each customer in Orb to have a valid shipping address. If a shipping address is not present, Orb will use the billing address for the purposes of tax calculation. In the case of an invalid or missing address, Orb will fail invoice issuance, and notify you in the dashboard of any failed invoices:
Customer addresses can be set via the API or via the dashboard from the customer details page.
In the case of a customer that qualifies for tax exemptions, Orb allows for configuring tax exempt status in the dashboard and the API.
From the webapp, this can be found under Customer details in the customers page. By default, all customers are eligible for tax collection.
For your customers with a backing Stripe provider (e.g. Stripe Invoices), Orb will automatically use Stripe to enrich your invoice with tax calculations.
Stripe Tax configuration is done entirely through your Stripe Dashboard. Find the Stripe Tax documentation here: Stripe Tax. Orb maintains a mapping between prices and Stripe products to assign a per-line item tax treatment.
When your account is integrated with TaxJar, all of your invoices will be automatically enriched with TaxJar-sourced tax amounts.
TaxJar integration can be configured through your organization settings.
The Sphere integration allows you to automatically enrich invoices with tax amounts sourced from Sphere. Orb will request tax amounts from Sphere at invoice or credit note issuance, and Sphere will later fetch all customers, invoices, and credit notes for display in Sphere’s UI. Because Sphere fetches resources from Orb asynchronously, you may see a delay in the tax amounts being displayed in Sphere.
Once you’ve gone through the prerequisites above, you can configure Sphere by following the steps below:
Unlike other tax integrations, you do not need to map Items in Orb to Products in Sphere. Sphere will automatically pull Items from Orb.
Sphere requires each customer in Orb to have a valid shipping address. If a shipping address is not present, Orb will use the billing address for the purposes of tax calculation. In the case of an invalid or missing address, Orb will fail invoice issuance, and notify you in the dashboard of any failed invoices:
Customer addresses can be set via the API or via the dashboard from the customer details page.
In the case of a customer that qualifies for tax exemptions, Orb allows for configuring tax exempt status in the Orb dashboard and the API.
From the webapp, this can be found under Customer details in the customers page. By default, all customers are eligible for tax collection.
Once a customer is marked as exempt from tax, Orb will not report tax from this customer to Sphere.
If a customer has a tax ID configured in Orb, Sphere will pull that information and display it in the Sphere UI. Tax IDs can be set via the API or via the Orb dashboard from the customer details page.