Configuring taxes

Gain a better understanding of how to use the checkout's taxInclusive flag

During checkouts, you can specify whether or not taxes are included in your product and shipping prices.

On this page, you'll find information on how to use the checkout's taxInclusive flag to:

• Pass tax inclusive prices

• Pass tax exclusive prices

Passing tax inclusive prices

If you want Digital River to subtract taxes from shippingChoice.amount and each items[].price, set taxInclusive to true.

POST /checkouts

curl --location --request POST 'https://api.digitalriver.com/checkouts' \
...
--data-raw '{
    "currency": "USD",
    "taxInclusive": true,
    "email": "[e-mail]",
    "shipTo": {
        "address": {
            "line1": "10380 Bren Road W",
            "city": "Minnetonka",
            "postalCode": "55343",
            "state": "MN",
            "country": "US"
        },
        "name": "John Doe"
    },
    "shipFrom": {
        "address": {
            "country": "US"
        }
    },
    "shippingChoice": {
        "amount": 5,
        "description": "standard",
        "serviceLevel": "SG"
    },
    "items": [
        {
            "skuId": "ed7b06bd-7b2e-4525-9156-cd6fcbe7fe42",
            "quantity": 2,
            "price": 10
        }
    ]
}'

With this configuration, Digital River computes shipping and line-item taxes and then subtracts these computed values from the prices you passed in the request.

In the response, we provide an updated shippingChoice.amount and the computed shippingChoice.taxAmount and do the same for each items[].

The checkout's subtotal represents the pre-tax price of its items[] and shippingChoice.amount and totalTax aggregates shippingChoice and items[] taxes.

Checkout

{
    "id": "7ffe373b-b358-4c76-8210-5dc118ce77ae",
    ...
    "totalAmount": 25.03,
    "subtotal": 23.28,
    "totalFees": 0.0,
    "totalTax": 1.75,
    "totalImporterTax": 0.0,
    "totalDuty": 0.0,
    "totalDiscount": 0.0,
    "totalShipping": 4.68,
    "items": [
        {
            "id": "1d99324f-6afa-4a90-808b-9d1234e2fc92",
            "skuId": "ed7b06bd-7b2e-4525-9156-cd6fcbe7fe42",
            "amount": 18.6,
            "quantity": 2,
            "tax": {
                "rate": 0.07525,
                "amount": 1.4
            },
            "importerTax": {
                "amount": 0.0
            },
            "duties": {
                "amount": 0.0
            },
            "fees": {
                "amount": 0.0,
                "taxAmount": 0.0
            }
        }
    ],
    "shippingChoice": {
        "amount": 4.68,
        "description": "standard",
        "serviceLevel": "SG",
        "taxAmount": 0.35
    },
    ...
}

Passing tax exclusive prices

If you want Digital River to add taxes to the checkout's shippingChoice.amount and each items[].price, set taxInclusive to false.

POST /checkouts

curl --location --request POST 'https://api.digitalriver.com/checkouts' \
...
--data-raw '{
    "currency": "USD",
    "taxInclusive": false,
    "email": "[e-mail]",
    "shipTo": {
        "address": {
            "line1": "10380 Bren Road W",
            "city": "Minnetonka",
            "postalCode": "55343",
            "state": "MN",
            "country": "US"
        },
        "name": "John Doe"
    },
    "shipFrom": {
        "address": {
            "country": "US"
        }
    },
    "shippingChoice": {
        "amount": 5,
        "description": "standard",
        "serviceLevel": "SG"
    },
    "items": [
        {
            "skuId": "ed7b06bd-7b2e-4525-9156-cd6fcbe7fe42",
            "quantity": 2,
            "price": 10
        }
    ]
}'

With this configuration, Digital River computes shipping and line-item taxes and returns these values in shippingChoice.taxAmount and items[].tax.amount .

Note that shippingChoice.amount remains the same as the value sent in the request. Likewise, each items[].amount equals the aggregated price in the request.

Checkout

{
    "id": "288ef50f-6b23-40ae-a8ad-3048b7f99ccf",
    ...
    "totalAmount": 26.89,
    "subtotal": 25.0,
    "totalFees": 0.0,
    "totalTax": 1.89,
    "totalImporterTax": 0.0,
    "totalDuty": 0.0,
    "totalDiscount": 0.0,
    "totalShipping": 5.0,
    "items": [
        {
            "id": "b5125c43-dc3b-4da4-a299-d8d0734f2873",
            "skuId": "ed7b06bd-7b2e-4525-9156-cd6fcbe7fe42",
            "amount": 20.0,
            "quantity": 2,
            "tax": {
                "rate": 0.07525,
                "amount": 1.51
            },
            "importerTax": {
                "amount": 0.0
            },
            "duties": {
                "amount": 0.0
            },
            "fees": {
                "amount": 0.0,
                "taxAmount": 0.0
            }
        }
    ],
    "shippingChoice": {
        "amount": 5.0,
        "description": "standard",
        "serviceLevel": "SG",
        "taxAmount": 0.38
    },
    ...
}

Guidelines for displaying tax

The display of tax during the checkout experience should follow these guidelines (access required).