🔍 Problem Statement

As a publisher, I need to apply different tax rates to individual line items within a bundled plan based on the product type, customer billing country, and VAT ID status.

For example, a publisher may create a bundled plan priced at $100, consisting of:

• Print: $50 — 7% tax

• Digital: $50 — 5% tax

The applicable tax rate for each line item must be dynamically resolved based on the customer's billing country, VAT ID, and the line item's content code/product type.

Certain tax scenarios also require specific legal text to be dynamically added to the invoice.

The tax calculation mechanism may be implemented through AvaTax or Pelcro's AI Tax module.

💡 User Story

• As a publisher, I want each line item within a bundled plan to have its tax calculated independently so that Print, Digital, and other components can follow their applicable tax rules.

• As a publisher, I want tax rates to be dynamically determined based on the customer's billing country, VAT ID status, and the line item's content code so that the correct tax treatment is applied.

• As a publisher, I want the appropriate legal text to be dynamically added to invoices when a transaction qualifies for a tax exemption or reverse-charge treatment.

• As a subscriber, I want the correct tax to be calculated for each component of my subscription so that my checkout total and invoice reflect the applicable tax treatment.

🎯 Definition of Done (DoD)

A feature is done when:

Tax Calculation per Line Item

✔ Given a bundled plan contains multiple line items, tax is resolved independently for each line item.

Example:

Create a bundled plan for $100:

• $50 Print

• $50 Digital

The Print and Digital components can receive different tax rates depending on the applicable tax rules.

✔ Tax resolution takes into consideration:

• vat_id

• billing_country

• content_code / product type

✔ The resolved tax is calculated against the amount of the corresponding line item rather than against the bundle as a single taxable amount.

✔ For bundled Digital & Print products, Print and Digital are evaluated independently whenever the applicable rules require different rates.