Introduction

This article explains how to change the tax rate for your ICM system.

References

Glossary

ICM - Change Tax Rates

Via taxdataset.properties File

The file $IS_HOME/share/system/config/cluster/taxdataset.properties is the central point where tax classes, tax rates and tax jurisdictions are defined in the system. The update mechanism for the tax data set is based on a set of pipelines which are executed on server startup. See attached file taxdataset.properties.

Tax Rate Syntax

The settings that were created by default can be completely overwritten by the settings in the file taxdataset.properties.

It is possible to set the exact start date for using the new tax value with the validfrom key, but there is no key that can be used to set an end date. Therefore, the tax rate configuration must be adjusted again after the start date.

Example

The following examples help to adjust the full and reduced VAT values for a period from 01.07.2020 to 31.12.2020. Starting next year 2021, the old VAT values will be applied again.
VAT adjustment for Germany before start data e.g. (01.07.2020):

taxdataset.properties

# ### 4. Tax Rates ##################
# ###    -> Define tax rate matrix
Rate.GERMANY.FULLTAX.value=0.16
Rate.GERMANY.FULLTAX.validfrom=01.07.2020
Rate.GERMANY.FULLTAX.previous=0.19
Rate.GERMANY.REDUCEDTAX.value=0.05
Rate.GERMANY.REDUCEDTAX.validfrom=01.07.2020
Rate.GERMANY.REDUCEDTAX.previous=0.07
Rate.GERMANY.NOTAX.value=0.0
Rate.OTHER.FULLTAX.value=0.0

VAT adjustment for Germany after start date e.g. (01.07.2020):

taxdataset.properties

# ### 4. Tax Rates ##################
# ###    -> Define tax rate matrix
Rate.GERMANY.FULLTAX.value=0.19
Rate.GERMANY.FULLTAX.validfrom=01.01.2021
Rate.GERMANY.FULLTAX.previous=0.16
Rate.GERMANY.REDUCEDTAX.value=0.07
Rate.GERMANY.REDUCEDTAX.validfrom=01.01.2021
Rate.GERMANY.REDUCEDTAX.previous=0.05
Rate.GERMANY.NOTAX.value=0.0
Rate.OTHER.FULLTAX.value=0.0

Change Tax Rates via SQL

Another possibility is, to change tax rates via SQL statements. Following statements change tax rates for full (19% → 16%) and reduced taxes (7% → 5%) in jurisdiction Germany on 06/30/2020 at 11:59:59.999 pm .

ORACLE

UPDATE TAXRATE
SET
RATE = 0.050000,
PREVIOUSRATE = 0.070000,
VALIDFROM =(SELECT SYS_EXTRACT_UTC(FROM_TZ(CAST(TO_DATE('2020-07-01 00:00:00', 'YYYY-MM-DD HH24:MI:SS') AS TIMESTAMP), SESSIONTIMEZONE) AT TIME ZONE 'GMT') FROM DUAL),
OCA = OCA + 1
WHERE 
RATE = 0.070000
AND TAXJURISDICTIONID in  (select J.TAXJURISDICTIONID from JURISDICTIONMAPPING J where  J.COUNTRY = 'DE');

UPDATE TAXRATE
SET
RATE = 0.160000,
PREVIOUSRATE = 0.190000,
VALIDFROM =(SELECT SYS_EXTRACT_UTC(FROM_TZ(CAST(TO_DATE('2020-07-01 00:00:00', 'YYYY-MM-DD HH24:MI:SS') AS TIMESTAMP), SESSIONTIMEZONE) AT TIME ZONE 'GMT') FROM DUAL),
OCA = OCA + 1
WHERE 
RATE = 0.190000
AND TAXJURISDICTIONID in  (select J.TAXJURISDICTIONID from JURISDICTIONMAPPING J where  J.COUNTRY = 'DE');

MS-SQL Server

MS-SQL Server

UPDATE TAXRATE
SET
RATE = 0.160000,
PREVIOUSRATE = 0.190000,
VALIDFROM = DATEADD(MINUTE, DATEPART(tz, SYSDATETIMEOFFSET())*(-1), CONVERT(datetimeoffset, '2020-06-30 23:59:59.9999999')),
OCA = R.OCA + 1
FROM TAXRATE R, JURISDICTIONMAPPING J
WHERE
R.TAXJURISDICTIONID = J.TAXJURISDICTIONID
AND J.COUNTRY = 'DE'
AND R.RATE = 0.190000;
 
UPDATE TAXRATE
SET
RATE = 0.050000,
PREVIOUSRATE = 0.070000,
VALIDFROM = DATEADD(MINUTE, DATEPART(tz, SYSDATETIMEOFFSET())*(-1), CONVERT(datetimeoffset, '2020-06-30 23:59:59.9999999')),
OCA = R.OCA + 1
FROM TAXRATE R, JURISDICTIONMAPPING J
WHERE R.TAXJURISDICTIONID = J.TAXJURISDICTIONID
AND J.COUNTRY = 'DE'
AND R.RATE = 0.070000;

ICM - Capture Payment

The capture feature of authorized payments in ICM always collects the full authorized amount without any adjustments.

Please note the following with regard to the VAT changes:

• If the amount was always debited manually via ICM from the customer, this can still be done. 

• If the VAT reduction should be passed to the customer in part or in full, this can be done by a manual refund after the capturing. There is no need for software adjustments in this way.
  Alternatively, a reduction could be executed first and then the new total amount could be debited (capture)
  The options (Refund, Reduce, Capture) depend on the functions provided by the connector to the payment provider.

• If the capturing is carried out by an ERP directly at the PSP, it is the responsibility of the PSP to debit the correct (possibly reduced) amount.

• B2C: For orders that are older than 4 months (before 01.03.2020), but will only be fulfilled in July, the customer can request an adjustment of the purchase price. These offsetting entries must be made in the connected Order Management (IOM, ERP).

ICM - Pending Baskets

A basket is (re-)calculated at every basket step during checkout. Furthermore every basket (re-)calculation retrieves the tax rates based on the current time again. This way the tax rate is correct every time.
The only case, where the basket is not re-calculation again is the final checkout step (checkout review). In conjunction with a session that still is not timed-out, the previous tax rate is used for order creation.

ICM - Subscriptions

In dependence of the preference FixedPriceRecurringOrders either the original price of the subscription or the current product price is used for subscription orders: