TaxMethod

A TaxMethod defines the calculation method used to determine how tax is handled for a contract or invoice — specifically whether prices are expressed inclusive or exclusive of tax, and whether any special fiscal treatment applies. Common tax methods include "net invoicing" (prices shown without tax, tax added on top at invoice time), "gross invoicing" (tax already included in the displayed price, broken out on the invoice), and "reverse charge" (where the tax liability is transferred from the seller to the buyer, typically in B2B cross-border transactions within the EU).

The TaxMethod stored on a contract is applied when the invoicing process generates an invoice from that contract: it controls whether the system calculates tax from the net prices upward or works backward from gross prices, and whether it prints tax lines on the invoice at all or instead prints a reverse-charge reference. Selecting the correct TaxMethod is therefore not merely a formatting choice — it directly determines the fiscal correctness and legal validity of the resulting invoice document.