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

# Indirect Tax Transactions

> Learn how to use the Commenda API to manage your taxes.

## Transactions

Commenda provides a range of endpoints to manage transactions:

1. `/calculate` endpoint:

   * Used to estimate sales tax for a potential transaction.
   * The response includes the calculated tax amount.

2. `/transactions` endpoints:
   * Used to submit completed transactions to our system.
   * Commenda uses this data to file indirect tax in jurisdictions where the seller is registered and track the seller’s progress toward registration thresholds.
   * Supports both sales (`SALE`) and purchase (`PURCHASE`) transaction types. Purchase transactions are used for input tax credit calculations (EU VAT / UK VAT) and are excluded from sales-focused flows like threshold tracking and filings.

3. `/nexus` endpoint:
   * Used to view the seller’s progress toward registration thresholds.

4. `/registrations` endpoints:
   * Used to manage sales tax registrations.
   * Commenda uses information about registrations on the `/calculate` endpoint to determine if tax should be collected on transactions.

5. `/filings` endpoints:
   * View the contents and status of a seller's periodic sales tax filings.

## Typical Usage

While the `/calculate` and `/transactions` endpoints can be used independently, a typical workflow is as follows:

<ol>
  <li>
    {" "}

    A customer visits your website, adds something to their cart, and clicks 'check
    out'.
  </li>

  <li>
    {" "}

    You call our `/calculate` API to determine the correct amount of sales tax to charge the customer.
  </li>

  <li>
    {" "}

    The customer pays the total amount, including the sales tax. You save the transaction details, including the subtotal and tax amount.
  </li>

  <li>
    {" "}

    After the transaction is completed, you call the `/transactions` API to submit the transaction details to our system.
  </li>
</ol>

## Discounts

Typically, discounts are treated as a reduction in the overall sales price. To account for this, simply call our `/calculate` and `/transactions` endpoints using the post-discount price as the `amount` and `subtotal`.

For accounting purposes, some customers may prefer to recognize the full sale amount and treat the discount as an expense. If you need this setup, please contact the Commenda team.