Last update of this content: January 26, 2024. If a new regulation or rate comes into effect, we will inform you by email and update it in this section.

Taxes

Check the taxes we charge for international transactions according to the country.

Introduction

Taxes within the authorization are summarized in the local_amount field and you will be able to see them broken down in the amount_details field, except for credit cards in 🇦🇷Argentina since the tax is calculated when the summary is closed through our TAX API.

While we calculate the taxes, you will be responsible for declaring and paying the taxes to the tax authorities. At Pomelo, we will provide the necessary reporting so that you can make the presentations and payments on time.

If you have integrated Cards + Digital accounts and use our license, we will take care of the tax declaration to the tax authorities and you will not receive these reports through our SFTP.

Types of taxes

Below, we will tell you about the transactional taxes that apply to 🇦🇷Argentina, 🇧🇷Brazil and 🇨🇱 Chile.

We do not apply taxes for 🇨🇴Colombia, 🇵🇪Peru, or 🇲🇽Mexico.

Operation

We will calculate and charge the tax at the time of the transaction if your customer pays with:

Debit card
Prepaid card
Credit card in 🇧🇷Brazil

At the time of the operation, your client must have the total amount of the transaction, including the percentage of tax. If they do not have the total amount, you must reject the transaction.

For credit cards, if the taxes are already included in the local_amount, you must deduct them from your customer's limit. If they are not included, such as in 🇦🇷Argentina, you must add them to the card statement when it is closed.

Credit card statements

For credit cards in 🇦🇷Argentina, when generating the statement for each card, you will need to use this endpoint to calculate the taxes. To make the calculation, we will only consider transactions with status APPROVED that are settled and we will use the exchange rate of the Banco Nación dollar on the date of closing of the card.

If you authorize a transaction and its settlement arrives after the date of closing of the card, we will show it in the next statement.

Refunds

When there is a refund of a transaction that had taxes, we will perform the same calculation we did to charge them, but this time to refund them.

Implementation

You just need to be able to process authorizations, since we will include taxes in the local_amount.

If you want to further improve the experience for your customers, you can show them in their movements the breakdown of how the amount in the transaction's local currency is composed.

The taxes within the authorization can be seen broken down in the amount_details field with type = tax.