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How to Send Tax Inclusive Transactions to Kintsugi

Updated 4 seconds ago

Mark a line item as tax inclusive so Kintsugi separates the gross amount into a pre-tax base and calculated tax instead of adding tax on top. Use this when the price you send already includes VAT, GST, or another tax.

Time required: varies by integration setup

You will need: an API integration that sends transactions or estimates to Kintsugi, and confirmation that your prices include tax

Before You Start

Confirm that the line amount you send is the full price with tax included. Marking a pre-tax amount as tax inclusive understates your tax. Transactions synced from connected platforms do not carry this flag automatically, so the flag must be set in the API request your system sends.


Steps

  1. Identify the lines whose prices include tax. These are typically sales in VAT and GST markets where the displayed price is the final price.

  2. Set is_tax_inclusive to true on each of those line items. The flag applies per line, not per transaction.

  3. Send the gross amount, tax included, as the line amount. Do not send the pre-tax amount.

  4. Leave the flag out, or set it to false, for lines where tax must be added on top. Those lines keep the standard tax exclusive calculation.

To get a consistent real-time estimate, set the same flag on the estimate line item. Estimates and final calculations use the same reverse calculation.

How to Confirm it Worked

Check the calculated result for the line. The pre-tax base plus the calculated tax should equal the gross amount you sent. For example, a gross amount of 118 at an 18% rate returns a base of 100 and tax of 18.

Things to Know

  • The flag applies when the transaction or estimate is processed. Previously processed transactions are not recalculated

  • Connected platform integrations do not set the flag automatically. It must come from the API request

  • There is no setting in the Kintsugi app to enable tax inclusive calculation. It is controlled per line in the request

  • Credit notes are supported through the same path, using negative amounts

FAQs

Q: What happens if I omit the flag?

A: The line is treated as tax exclusive and tax is calculated on top of the amount, which is the existing default behavior.

Q: Does this work for estimates?

A: Yes. Set the flag on the estimate line item and the estimate follows the same reverse calculation.

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