Integrating cloud brokerage platforms with third-party financial tools
For cloud service resellers operating across multiple countries, accurate tax calculation and multi-currency support are critical for compliance and financial accuracy. Different regions apply varying VAT, GST, and digital service taxes, making manual calculations complex and time-consuming.
Cloud brokerage solutions like ActivePlatform simplify tax management for cloud resellers by automating tax calculations with built-in tax engines. As an alternative, many resellers integrate their cloud brokerage platforms with third-party financial tools like NetSuite, Avalara, and SAP Tax Service for more precise tax handling.
ActivePlatform follows this integrated approach, allowing choosing between a built-in tax module and external financial systems to handle tax calculations while keeping the invoicing and payment experience smooth for customers. This reduces compliance risks, supports custom tax rules, and ensures invoices align with contract terms.
Cloud brokerage solutions like ActivePlatform simplify tax management for cloud resellers by automating tax calculations with built-in tax engines. As an alternative, many resellers integrate their cloud brokerage platforms with third-party financial tools like NetSuite, Avalara, and SAP Tax Service for more precise tax handling.
ActivePlatform follows this integrated approach, allowing choosing between a built-in tax module and external financial systems to handle tax calculations while keeping the invoicing and payment experience smooth for customers. This reduces compliance risks, supports custom tax rules, and ensures invoices align with contract terms.
How integration with external tax systems works
Rather than applying taxes directly, ActivePlatform follows a two-step invoicing process when integrated with external financial tools:
1. Generating a preliminary invoice (without taxes)
🔹 ActivePlatform issues an invoice with product/service prices only, excluding taxes.
🔹 The invoice is sent to an external tax and finance system (NetSuite).
🔹 The system calculates applicable VAT, GST, sales tax, or digital service tax based on customer location, tax exemptions, and contract-specific rules.
2. Finalizing the invoice with external tax calculations
🔹 The external system applies the correct tax rates and, if needed, converts the invoice into a different currency as per the customer's contract.
🔹 It then sends the finalized invoice back to ActivePlatform, now including all taxes and the final payable amount.
🔹 The customer sees the updated invoice in the platform and can proceed with payment.
This process ensures:
✅ Accurate tax handling — taxes are always calculated based on the latest regulations.
✅ Multi-currency support — the system applies the correct exchange rate for customers operating in different currencies.
✅ Legal compliance — the external system ensures invoices meet local tax authority requirements.
1. Generating a preliminary invoice (without taxes)
🔹 ActivePlatform issues an invoice with product/service prices only, excluding taxes.
🔹 The invoice is sent to an external tax and finance system (NetSuite).
🔹 The system calculates applicable VAT, GST, sales tax, or digital service tax based on customer location, tax exemptions, and contract-specific rules.
2. Finalizing the invoice with external tax calculations
🔹 The external system applies the correct tax rates and, if needed, converts the invoice into a different currency as per the customer's contract.
🔹 It then sends the finalized invoice back to ActivePlatform, now including all taxes and the final payable amount.
🔹 The customer sees the updated invoice in the platform and can proceed with payment.
This process ensures:
✅ Accurate tax handling — taxes are always calculated based on the latest regulations.
✅ Multi-currency support — the system applies the correct exchange rate for customers operating in different currencies.
✅ Legal compliance — the external system ensures invoices meet local tax authority requirements.
Why use third-party financial tools for tax calculation?
While cloud brokerage platforms can handle basic tax rules, specialized financial tools provide greater flexibility and compliance advantages for businesses operating in multiple jurisdictions:
🔹 NetSuite — offers automated tax calculations, multi-currency invoicing, and integration with global tax rules. Used by mid-sized to large enterprises for comprehensive financial reporting and compliance tracking.
🔹 Avalara — a leading tax automation platform that calculates VAT, GST, sales tax, and digital services taxes with real-time regulatory updates. Particularly useful for cross-border transactions and global tax compliance.
🔹 SAP Tax Service — part of SAP’s ERP suite, this tool automates tax reporting, supports tax exemptions, and handles reverse charge mechanisms. It integrates with SAP S/4HANA and cloud-based platforms, including some CBPs, to streamline international tax compliance.
🔹 Vertex — specializes in corporate tax solutions, providing automated tax compliance for enterprises operating in multiple countries. While it supports resellers, its primary focus is on managing complex, multi-jurisdictional tax scenarios.
By using an external tax engine, resellers and enterprises can focus on sales and service delivery, while a dedicated financial tool ensures full tax compliance, accurate reporting, and reduced regulatory risk.
🔹 NetSuite — offers automated tax calculations, multi-currency invoicing, and integration with global tax rules. Used by mid-sized to large enterprises for comprehensive financial reporting and compliance tracking.
🔹 Avalara — a leading tax automation platform that calculates VAT, GST, sales tax, and digital services taxes with real-time regulatory updates. Particularly useful for cross-border transactions and global tax compliance.
🔹 SAP Tax Service — part of SAP’s ERP suite, this tool automates tax reporting, supports tax exemptions, and handles reverse charge mechanisms. It integrates with SAP S/4HANA and cloud-based platforms, including some CBPs, to streamline international tax compliance.
🔹 Vertex — specializes in corporate tax solutions, providing automated tax compliance for enterprises operating in multiple countries. While it supports resellers, its primary focus is on managing complex, multi-jurisdictional tax scenarios.
By using an external tax engine, resellers and enterprises can focus on sales and service delivery, while a dedicated financial tool ensures full tax compliance, accurate reporting, and reduced regulatory risk.
The future of cloud billing with tax automation
Managing taxes manually is no longer an option for cloud resellers serving multiple regions. Integrating cloud brokerage platforms with third-party financial tools simplifies tax compliance while ensuring accurate pricing, multi-currency invoicing, and seamless customer payments.
ActivePlatform's two-step invoicing model ensures that tax calculations remain precise, transparent, and fully compliant with local regulations. By leveraging external financial tools, resellers can reduce administrative burdens and focus on growing their cloud business globally.
Book a demo today to see how ActivePlatform integrates with NetSuite and other financial tools to simplify tax management for your cloud business!
ActivePlatform's two-step invoicing model ensures that tax calculations remain precise, transparent, and fully compliant with local regulations. By leveraging external financial tools, resellers can reduce administrative burdens and focus on growing their cloud business globally.
Book a demo today to see how ActivePlatform integrates with NetSuite and other financial tools to simplify tax management for your cloud business!
About ActivePlatform
ActivePlatform is a full-service automated cloud brokering solution for cloud service providers and internal IT hubs that makes it easier to manage and control the cloud delivery and profitability. ActivePlatform unites vendors, providers, developers, and resellers into a single ecosystem for buying, selling, and managing cloud services. With its open vendor integration framework, ActivePlatform creates a vibrant catalog of cloud services ultimately helping businesses gain access to the services they need to thrive.
ActivePlatform enables SaaS, PaaS, IaaS aggregation, delivery, and monetization, provides simplified administration through central management, and enables critical visibility into resellers and cloud services consumption and usage. The platform has implementations with distributors, cloud solution providers, and telecom operators. ActivePlatform is headquartered in Europe.
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