> ## Documentation Index
> Fetch the complete documentation index at: https://developer.transactbridge.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Taxation

Different countries have different tax rules and regulations for different products. Within the same country also, different products are taxes according to different jurisdictions.
TransactBridge allows to automate merchant's entire sales tax, VAT, and GST compliances without the overhead of maintaining tax logic and rules in the merchant's system. We  configure tax rules for different products and jurisdictions at our end, which will be applied automatically during billing.

> Tax configuration helps automate tax calculation during billing, reducing manual effort and improving compliance.

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## Business Use Cases

| Business Use Case                     | Description                                                                | Example                                                                                                                            |
| ------------------------------------- | -------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------- |
| **Digital SaaS Products**             | Apply GST or applicable taxes on software subscriptions sold to customers. | A SaaS company selling a ₹2,000 monthly subscription automatically adds the configured GST before invoice generation.              |
| **One-Time Digital Purchases**        | Calculate taxes on one-time purchases such as software licenses or eBooks. | A customer purchases an eBook for ₹500, and the applicable tax is automatically included in the final payable amount.              |
| **Recurring Subscriptions**           | Apply tax on every recurring billing cycle without manual intervention.    | A monthly subscription renews every month, and tax is calculated automatically for each invoice.                                   |
| **Global Merchants Selling in India** | Ensure Indian tax compliance while selling to Indian customers.            | A US-based SaaS company uses TransactBridge to calculate and apply taxes for Indian customers without maintaining local tax logic. |
| **Invoice Generation**                | Generate invoices containing itemized tax details for customers.           | Every completed payment includes a downloadable invoice showing subtotal, tax amount, and total payable amount.                    |
| **Financial Reconciliation**          | Maintain accurate tax records for accounting and reporting.                | Finance teams reconcile monthly collections using invoices that already contain tax breakdowns.                                    |

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## Example

### Product Price

* Subscription Price: **₹2,000**
* Applicable GST: **18%**

| Description         |     Amount |
| ------------------- | ---------: |
| Subscription Amount |     ₹2,000 |
| GST (18%)           |       ₹360 |
| **Total Payable**   | **₹2,360** |

During checkout, the configured tax is automatically added to the order, and the generated invoice contains the complete tax breakdown for the customer.

***

## Benefits

* Automated tax calculation during checkout
* Tax-compliant invoice generation
* Reduced manual effort and calculation errors
* Simplified financial reporting and reconciliation
* Consistent tax application across one-time and recurring payments