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Administrator Guide
Last Updated: 2025-12-12
Add Tax Overrides to SOW Milestone and Fixed Price Payments

Add Tax Overrides to SOW Milestone and Fixed Price Payments

Enable the
Allow tax overrides on milestone and scheduled payments
 setting in your tenant (
More
Company Settings
Statement of Work
SOW Configuration
Payment Configuration
).
You can specify tax overrides, including locations and rates, when creating Statement of Work (SOW) milestone and fixed price payment workflows.
This can help you ensure that accurate tax calculations are used on your SOW milestone and fixed price payments based on your program’s unique needs. For example, this feature can benefit programs that:
  • Employ international workers whose work benefits an entity outside of their physical location, such as workers in the United States of America benefitting a European entity.
  • Employ international workers whose location is different from the location used for tax purposes.
This guide explains how to add tax overrides when you initially create a SOW milestone or fixed price payment. However, you can also edit tax overrides on SOW milestone and fixed price payments with a change order. See Create Change Order in Statement of Work.
  1. From the header, select
    Statement of Work
    Statement of Work
    .
  2. Open or create a SOW with a
    Payment Type
     of
    Fixed Price
     or
    Milestone
    .
  3. If you’re creating a fixed price payment, select the
    Fixed Price Payments
     tab and click
    Schedule Payment
    . If you’re creating a milestone payment, select the
    Milestones
     tab and click
    Add Milestone
    .
  4. In the
    Taxation
     section, make sure that
    Is this SOW Payment Taxable?
     is set to
    Yes
    .
  5. Complete the
    Tax Behavior
     field to set your tax override. Consider:
    Option
    Description
    Use payment location to calculate taxes
    This option is selected by default. Taxes are calculated based on your selection in the
    Location
     field.
    Use a tax rate from another location, different from the payment’s location
    Taxes are calculated based on a location that’s different from the one in the
    Location
     field. Select your
    Tax Location
     from the drop-down list.
    Set the tax rate manually
    Taxes are calculated based on your specifications. Select the country for your tax rate and provide the information and tax percentages associated with that country.
  6. Finish creating the payment and click
    Save
    .
VNDLY applies the tax override you created.
Note that VNDLY calculates taxes twice: when the invoice line item is initially created, and again when the invoice is finalized. This means that if you created the tax override after the invoice line items were created but before finalizing the invoice, VNDLY still applies the tax override. You don’t need to adjust the invoice line items to ensure that taxes are recalculated correctly based on the tax override. Example: An invoice line item is created on November 12. You create a tax override on November 14, and you finalize the invoice on November 21. VNDLY applies the tax override to the invoice.
After invoicing is complete, you can report on tax override details such as the tax location, tax country, and tax rate in the
Invoice Details
 dataset.