Tax jurisdiction

A tax jurisdiction is an area subject to its own tax regulations.

"Registered jurisdictions" refer to the locations where your business is registered to collect taxes and has a local tax number. This registration is independent of the countries or states where you sell your products or services.

For Quaderno to calculate tax correctly, you first need to set up the tax jurisdictions where your business is currently registered and has a local tax number.

To configure your registered tax jurisdictions into Quaderno:

  1. Go to the jurisdictions page and add your local tax ID  and registration dates.
  2. Make sure you check Permanent establishment when you also have a physical presence there.

Do not set up a tax jurisdiction in Quaderno if you are not registered there yet. Collecting taxes before you are registered is illegal.

Here's a quick video to guide you through the process:

A tax jurisdiction can be a country, region, group of countries, province, state, city, county, district or any other area with a designated authority for tax purposes. For example:

  • In the United States, there are thousands of jurisdictions applying sales or use tax.
  • Each EU state has its own jurisdiction but they all share a common jurisdiction for VAT via the EU OSS / IOSS schemes.
  • In Canada, there's a federal jurisdiction and four provincial jurisdictions (Québec, British Columbia, Manitoba, and Saskatchewan).

Any tax jurisdiction may impose its own registration requirements, even for businesses without any physical presence in their territory.

Based on the type of product being sold and the sales volume (tax threshold) in a given jurisdiction, a business is bound to register for tax collection there.

🔎 You can read more about tax jurisdictions in our blog article.

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