Tax jurisdiction

A tax jurisdiction is an area subject to its tax regulations. It 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 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).

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

How to set up your registered tax jurisdictions

A registered tax jurisdiction is any location where your business is registered to collect local taxes and has a local tax ID. This registration is independent of the countries or states where you sell your products or services.

For Quaderno to accurately calculate taxes, it is essential to configure all your registered tax jurisdictions:

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

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

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

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