Taxation

Taxation is a crucial aspect of the billing and revenue management process in the service provider industry. Service providers must collect and remit various taxes and fees to government authorities based on the products or services they offer, as well as the location of their customers.

The OCS.io solution offers out-of-the-box functionality to calculate taxes, which involves adding a defined tax rate to each event during Online Rating & Charging or a group of events with the same tax category during the Billing process. This functionality is suitable for businesses or tax jurisdictions with straightforward tax calculation requirements, such as most EU countries. It supports various Tax levels, including the No-Tax level for services without taxes of the No-Tax level for 3rd party services when taxation liability is transferred to the 3rd service provider.

The OCS.io solution allows for the unlimited definition of tax rates, including standard rates (e.g., 19%), reduced rates (e.g., 5%), and no-tax rates (with a value of 0%). However, suppose your business or tax jurisdiction requires more complex Taxation, such as in the United States of America. In that case, the system offers the option to configure no-tax rates and process taxation using an external vendor, such as Vertex.