> ## Documentation Index
> Fetch the complete documentation index at: https://paypal-sb-staging.mintlify.site/llms.txt
> Use this file to discover all available pages before exploring further.
# Set up tax reporting
You can set up API access and webhook notifications to retrieve and deliver tax reports to your merchants.
## Prerequisites
Before you begin, ensure you have:
* Active PayPal Complete Payments partnership.
* REST API and webhook notification integration.
* Merchant onboarding process to collect tax information through KYC/CIP verification.
## 1. Enable Tax Reporting as a Service
Contact your PayPal account manager to activate Tax Reporting as a Service for your partner account.
PayPal will:
1. Enable the Tax Reporting as a Service feature for your partner account.
2. Configure your account in the tax reporting platform.
After activation, PayPal provides your API credentials and partner account details for integration.
## 2. Set up webhook notifications
Configure webhook endpoints to receive real-time notifications about tax report events:
1. Subscribe to webhook events using one of the following methods:
* **PayPal developer account**:
1. Log in to your account.
2. Go to **App details** page > **Features** > **Webhooks**.
3. Subscribe to webhook events.
* **Webhooks management API**: Use the Webhooks management API.
2. In your server-side app code, define a webhook handler that:
* Listens to the webhook event.
* Confirms receipt of the webhook event to PayPal.
* Verifies the source of the event notification.
* Parses the webhook payload received from PayPal and uses the data to deliver tax reports to merchants.
### Available webhook events
| Event | Trigger |
| ---------------------------- | --------------------------------------------------------------------------------------------------------------------- |
| `TAXES.REPORTS.GENERATED` | A new tax report was generated and is ready for download. Use the `is_corrected` field to identify corrected reports. |
| `TAXES.REPORT_COUNT_UPDATED` | Aggregate report counts were updated on scheduled dates.
Example: April 1 for yearly counts. |
```json TAXES.REPORTS.GENERATED theme={null}
{
"id": "WH-COC11055RA711503B-4YM959094A144403T",
"event_type": "TAXES.REPORTS.GENERATED",
"resource_type": "TAX-REPORT",
"resource": {
"id": "11EF-C99C-DAB460D9-B5FE-CF39DF1DE4AF",
"account_id": "5U29WL78XSAE",
"report_type": "1099-K",
"tax_year": 2024,
"total_files": 1,
"is_corrected": false,
"status": "GENERATION_COMPLETED",
"create_time": "2025-01-03T06:35:27.540Z",
"archive_time": "2035-01-01T06:35:27.540Z",
"files_info": {
"files": [
{
"sequence": 1,
"name": "1099K_2024_5074985856743188092_1736229880213.pdf",
"links": [
{
"href": "https://api.paypal.com/v2/content/documents/CMP-044-11ef-ccbd-4c4e9b80-bd01-b6a073d4df5f/files/1/download",
"rel": "self",
"method": "GET"
}
]
}
]
},
"links": [
{
"href": "/v2/taxes/reports/11EF-C99C-DAB460D9-B5FE-CF39DF1DE4AF",
"rel": "self",
"method": "GET"
}
]
}
}
```
```json TAXES.REPORT_COUNT_UPDATED theme={null}
{
"specversion": "1.0",
"id": "34957435872E",
"type": "TAXES.REPORT_COUNT_UPDATED",
"source": "tax-report-service",
"time": "2024-10-27T10:00:00Z",
"reportCounts": [
{
"counter_name": "WIX_CORE_1099K_ELECTRONIC_FEDERAL",
"counter_type": "YEARLY",
"start_time": "2024-01-01T00:00:00+05:30",
"report_type": "SUMMARY",
"description": "Sales_1099-K",
"count_value": 15000,
"metadata": {
"tenant": "PAYPAL",
"partner": {
"account_number": "5074670210318800555",
"account_type": "BUSINESS",
"country_code": "US"
},
"merchant": {},
"product_attributes": {
"fee_event_type": "TEN99K",
"service_type": "NON_TRANSACTIONAL",
"properties": [
{
"name": "process_count",
"value": "15000"
},
{
"name": "process_type",
"value": "FEDERAL_FILING"
},
{
"name": "form_type",
"value": "ELECTRONIC"
},
{
"name": "tax_year",
"value": "2025"
}
]
}
}
}
],
"extensions": {
"correlationId": "some-correlation-id",
"xPaypalSecurityContext": "some-security-context",
"paypalTenantContext": "some-tenant-context",
"paypalApplicationContext": "some-application-context"
}
}
```