> ## Documentation Index
> Fetch the complete documentation index at: https://docs.slm.m1amdocs.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Define Taxation Rules for Purchases

You must ensure appropriate sales/use taxes are included in subscriber purchases. To support this functionality, you must configure the taxation settings through Vindicia support.

* **Use Case Number:** 2-8-05
* **Completed By:** Vindicia Solution Architect
* **Estimated Completion Time:** \<1 day

## Basic Scenario

Subscribe applies the appropriate sales/use taxes in all purchases made by your subscribers.

## Design Approach

Subscribe leverages [Avalara's AvaTax](https://www.avalara.com/us/en/index.html) for identification and calculation of applicable taxes. Vindicia configures AvaTax based on your Tax Nexus. Tax Nexus generally refers to the combination of the location of your business, how your business is classified by the tax authorities, and the geographies where you intend to sell your products and services.

For more information see [Sales Tax](https://docs.vindicia.com/bundle/howTo/page/topics/Sales_Tax.html).

## Alternative Tax Implementation

Alternatively, Vindicia Subscribe can also integrate with your own instance of Avalara AvaTax or Vertex O Series tax solution instead of the Subscribe instance. In this case, you are responsible for the setup and configuration of your tax solution.

* **[Configure Taxation Settings Through Vindicia Support](../topics/2805_r_taxation#)**

**Parent topic:**[Key Concepts and Best Practices](../topics/r_keyConceptsBestPractices)

## Configure Taxation Settings Through Vindicia Support

* Define a product catalog with prices specified.
* Determine your Tax Nexus.

1. For the initial Subscribe setup, you must define your Tax Nexus in the Merchant Account Configuration (MAC) document.

   Vindicia will configure the required tax settings for you in Subscribe.

2. Following your initial Subscribe setup, if you desire changes to your tax rules, you must open a ticket with Vindicia product support.

   Vindicia support will modify the rules at your direction.

Your tax rules are defined in Subscribe's tax engine provider and you are enabled for tax collection.

**Parent topic:**[Define Taxation Rules for Purchases](../topics/2805_r_taxation#)


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