VAT [Tax]

VAT Application Hierarchy: Organization → Company → End User

The system supports VAT configuration at three levels:

1. Organization level

2. Company level

3. End user level

Each participant is charged their own VAT rate if one exists. If the participant does not have a VAT rate, the system uses the Organization’s VAT rate as the fallback.

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1. Organization VAT Only

Input values:

• Organization VAT: e.g., 21%

• Company VAT: none

• End user VAT: none

Application logic:

• The company is charged using 21% (the organization’s VAT rate).

• The end user is also charged using 21% (the organization’s VAT rate).

Result:

• All transactions use the Organization-level VAT.

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2. Organization VAT + Company VAT

Input values:

• Organization VAT: e.g., 21%

• Company VAT: e.g., 18%

• End user VAT: none

Application logic:

• The company is charged using 18% (the company’s VAT rate overrides the organization’s rate).

• The end user is charged using 21% (falls back to the organization’s VAT rate because the end user does not have its own rate).

Result:

• Company pays: 18% VAT

• End user pays: 21% VAT

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3. All Three Levels Have VAT

Input values:

• Organization VAT: e.g., 21%

• Company VAT: e.g., 18%

• End user VAT: e.g., 22%

Application logic:

• The company is charged using 18% (company-level VAT takes priority).

• The end user is charged using 22% (end-user-level VAT takes priority).

Result:

• Company pays: 18% VAT

• End user pays: 22% VAT