# Taxes

> A Tax represents a tax rate (such as VAT) that applies in a country, used to compute tax-included prices.

A **Tax** represents a tax rate that applies in a given [Country](/api/product-management/countries/) - a VAT rate, for example. It has a `rate` (a percentage from 0 to 100), a translatable `name` and `description`, and belongs to exactly one country.

Taxes are how Flowkiwi turns a tax-excluded price into a tax-included one. A [Sale offer](/api/product-management/sale-offers/) carries a `taxExcludedPrice` and references a tax; the tax-included price a buyer pays is computed from that tax's `rate`. [Purchase offers](/api/product-management/purchase-offers/) reference a tax the same way on the buying side.

## The Tax object

## Common workflows

- **Set up a country's VAT.** Create a tax with the country's standard `rate` and link it to the [Country](/api/product-management/countries/), then reference it from your offers.
- **Apply a reduced rate.** Create a second tax for the same country with a lower `rate` (for goods that qualify) and point the relevant offers at it.
- **Update a rate.** [Patch](/api/product-management/taxes/update/) the `rate` when legislation changes; offers that reference the tax pick up the new rate.

## Conventions

### Authentication and headers

All requests require an OAuth 2.0 bearer token and the organization scope header:

```
Authorization: Bearer <token>
X-Flowkiwi-Organization-Id: <organization-id>
```

For the translatable `name` and `description`, set the active locale (and optionally a fallback):

```
X-Flowkiwi-Locale: fr-FR
X-Flowkiwi-Locale-Fallback: en-US
```

### Partial updates

`PATCH` uses [JSON Merge Patch](https://datatracker.ietf.org/doc/html/rfc7396) with `Content-Type: application/merge-patch+json`.