diff --git a/app/DataMapper/Tax/RuleInterface.php b/app/DataMapper/Tax/RuleInterface.php
index a9403451b539..633ba0b7be8e 100644
--- a/app/DataMapper/Tax/RuleInterface.php
+++ b/app/DataMapper/Tax/RuleInterface.php
@@ -11,6 +11,9 @@
 
 namespace App\DataMapper\Tax;
 
+use App\Models\Client;
+use App\DataMapper\Tax\ZipTax\Response;
+
 interface RuleInterface
 {
     public function tax();
@@ -27,5 +30,11 @@ interface RuleInterface
 
     public function taxPhysical();
 
+    public function taxReduced();
+
     public function default();
+
+    public function setClient(Client $client);
+
+    public function setTaxData(Response $tax_data);
 }
\ No newline at end of file
diff --git a/app/DataMapper/Tax/de/Rule.php b/app/DataMapper/Tax/de/Rule.php
index 6097338b9d7e..55d47ef208cc 100644
--- a/app/DataMapper/Tax/de/Rule.php
+++ b/app/DataMapper/Tax/de/Rule.php
@@ -11,6 +11,7 @@
 
 namespace App\DataMapper\Tax\de;
 
+use App\Models\Client;
 use App\Models\Product;
 use App\DataMapper\Tax\RuleInterface;
 use App\DataMapper\Tax\ZipTax\Response;
@@ -100,10 +101,24 @@ class Rule implements RuleInterface
     public string $tax_name3 = '';
     public float $tax_rate3 = 0;
     
+    protected ?Client $client;
 
-    public function __construct(public Response $tax_data)
+    public function __construct()
+    {
+    }
+
+    public function setClient(Client $client): self
+    {
+        $this->client = $client;
+
+        return $this;
+    }
+
+    public function setTaxData(Response $tax_data): self
     {
         $this->tax_data = $tax_data;
+
+        return $this;
     }
 
     public function tax(): self
@@ -126,12 +141,21 @@ class Rule implements RuleInterface
             Product::PRODUCT_TYPE_SERVICE => $this->taxService(),
             Product::PRODUCT_TYPE_SHIPPING => $this->taxShipping(),
             Product::PRODUCT_TYPE_PHYSICAL => $this->taxPhysical(),
+            Product::PRODUCT_TYPE_REDUCED_TAX => $this->taxReduced(),
             default => $this->default(),
         };
         
         return $this;
     }
 
+    public function taxReduced(): self
+    {
+        $this->tax_rate1 = $this->vat_reduced_rate;
+        $this->tax_name1 = 'VAT';
+
+        return $this;
+    }
+
     public function taxExempt(): self
     {
         $this->tax_name1 = '';
diff --git a/app/DataMapper/Tax/us/Rule.php b/app/DataMapper/Tax/us/Rule.php
index 7fee2564dac3..7454f6b0ca3a 100644
--- a/app/DataMapper/Tax/us/Rule.php
+++ b/app/DataMapper/Tax/us/Rule.php
@@ -11,6 +11,7 @@
 
 namespace App\DataMapper\Tax\us;
 
+use App\Models\Client;
 use App\Models\Product;
 use App\DataMapper\Tax\RuleInterface;
 use App\DataMapper\Tax\ZipTax\Response;
@@ -80,10 +81,26 @@ class Rule implements RuleInterface
     public string $tax_name3 = '';
     public float $tax_rate3 = 0;
     
-    public function __construct(public Response $tax_data)
+    public ?Client $client;
+
+    public ?Response $tax_data;
+
+    public function __construct()
+    {
+    }
+
+    public function setTaxData(Response $tax_data): self
     {
         $this->tax_data = $tax_data;
-        nlog($tax_data);
+
+        return $this;
+    }
+
+    public function setClient(Client $client):self 
+    {
+        $this->client = $client;
+
+        return $this;
     }
 
     public function tax(): self
@@ -158,4 +175,11 @@ class Rule implements RuleInterface
 
         return $this;
     }
+
+    public function taxReduced(): self
+    {
+        $this->tax();
+
+        return $this;
+    }
 }
diff --git a/app/Helpers/Invoice/InvoiceItemSum.php b/app/Helpers/Invoice/InvoiceItemSum.php
index f093962f7f98..99de411c0be7 100644
--- a/app/Helpers/Invoice/InvoiceItemSum.php
+++ b/app/Helpers/Invoice/InvoiceItemSum.php
@@ -112,8 +112,8 @@ class InvoiceItemSum
 
             $tax_data = new Response($this->invoice->tax_data);
 
-            $this->rule = new $class($tax_data);
-            
+            $this->rule = new $class();
+            $this->rule->setTaxData($tax_data);
             $this->calc_tax = true;
 
             return $this;
diff --git a/app/Models/Product.php b/app/Models/Product.php
index 30623b9c706b..ad17e87038fa 100644
--- a/app/Models/Product.php
+++ b/app/Models/Product.php
@@ -116,6 +116,7 @@ class Product extends BaseModel
     public const PRODUCT_TYPE_DIGITAL = 3;
     public const PRODUCT_TYPE_SHIPPING = 4;
     public const PRODUCT_TAX_EXEMPT = 5;
+    public const PRODUCT_TYPE_REDUCED_TAX = 6;
 
     protected $fillable = [
         'custom_value1',
diff --git a/app/Services/Tax/ProcessRule.php b/app/Services/Tax/Providers/EuTax.php
similarity index 98%
rename from app/Services/Tax/ProcessRule.php
rename to app/Services/Tax/Providers/EuTax.php
index 21a4b197d799..9c29727d72b8 100644
--- a/app/Services/Tax/ProcessRule.php
+++ b/app/Services/Tax/Providers/EuTax.php
@@ -9,14 +9,14 @@
  * @license https://www.elastic.co/licensing/elastic-license
  */
 
-namespace App\Services\Tax;
+namespace App\Services\Tax\Providers;
 
 use App\Models\Client;
 use App\Models\Company;
 use Illuminate\Support\Str;
 use App\DataMapper\Tax\de\Rule;
 use App\Services\Tax\VatNumberCheck;
-class ProcessRule
+class EuTax
 {
     public Rule $rule;
 
diff --git a/app/Services/Tax/Providers/TaxProvider.php b/app/Services/Tax/Providers/TaxProvider.php
new file mode 100644
index 000000000000..7690eca00475
--- /dev/null
+++ b/app/Services/Tax/Providers/TaxProvider.php
@@ -0,0 +1,194 @@
+<?php
+/**
+ * Invoice Ninja (https://invoiceninja.com).
+ *
+ * @link https://github.com/invoiceninja/invoiceninja source repository
+ *
+ * @copyright Copyright (c) 2023. Invoice Ninja LLC (https://invoiceninja.com)
+ *
+ * @license https://www.elastic.co/licensing/elastic-license
+ */
+
+namespace App\Services\Tax\Providers;
+
+use App\Models\Client;
+use App\Models\Company;
+use Illuminate\Http\Client\Response;
+use Illuminate\Support\Facades\Http;
+
+class TaxProvider
+{
+
+    public array $eu_countries = [
+        "AT",
+        "BE",
+        "BG",
+        "HR",
+        "CY",
+        "CZ",
+        "DK",
+        "EE",
+        "FI",
+        "FR",
+        "DE",
+        "GR",
+        "HU",
+        "IE",
+        "IT",
+        "LV",
+        "LT",
+        "LU",
+        "MT",
+        "NL",
+        "PL",
+        "PT",
+        "RO",
+        "SK",
+        "SI",
+        "ES",
+        "SE"
+    ];
+
+    private string $provider = ZipTax::class;
+    
+    private mixed $api_credentials;
+
+
+    public function __construct(protected Company $company, protected Client $client)
+    {
+
+    }
+
+
+    public function updateCompanyTaxData(): self
+    {
+        $this->configureProvider($this->provider); //hard coded for now to one provider, but we'll be able to swap these out later
+
+        $company_details = [
+            'address1' => $this->company->settings->address1,
+            'address2' => $this->company->settings->address2,
+            'city' => $this->company->settings->city,
+            'state' => $this->company->settings->state,
+            'postal_code' => $this->company->settings->postal_code,
+            'country_id' => $this->company->settings->country_id,
+        ];
+
+        $tax_provider = new $this->provider($company_details);
+
+        $tax_provider->setApiCredentials($this->api_credentials);
+        
+        $tax_data = $tax_provider->run();
+        
+        $this->company->tax_data = $tax_data;
+        
+        $this->company->save();
+
+        return $this;
+
+    }
+
+    public function updateClientTaxData(): self
+    {
+        $this->configureProvider($this->provider); //hard coded for now to one provider, but we'll be able to swap these out later
+
+        $billing_details =[
+            'address1' => $this->client->address1,
+            'address2' => $this->client->address2,
+            'city' => $this->client->city,
+            'state' => $this->client->state,
+            'postal_code' => $this->client->postal_code,
+            'country_id' => $this->client->country_id,
+        ];
+
+        $shipping_details =[
+            'address1' => $this->client->shipping_address1,
+            'address2' => $this->client->shipping_address2,
+            'city' => $this->client->shipping_city,
+            'state' => $this->client->shipping_state,
+            'postal_code' => $this->client->shipping_postal_code,
+            'country_id' => $this->client->shipping_country_id,
+        ];
+
+
+        $tax_provider = new $this->provider();
+
+        $tax_provider->setApiCredentials($this->api_credentials);
+        
+        $tax_data = $tax_provider->run();
+        
+        $this->company->tax_data = $tax_data;
+        
+        $this->company->save();
+
+        return $this;
+
+
+        return $this;
+
+    }
+
+    private function configureProvider(?string $provider): self
+    {
+
+        match($this->client->country->iso_3166_2){
+            'US' => $this->configureZipTax(),
+            "AT" => $this->configureEuTax(),
+            "BE" => $this->configureEuTax(),
+            "BG" => $this->configureEuTax(),
+            "HR" => $this->configureEuTax(),
+            "CY" => $this->configureEuTax(),
+            "CZ" => $this->configureEuTax(),
+            "DK" => $this->configureEuTax(),
+            "EE" => $this->configureEuTax(),
+            "FI" => $this->configureEuTax(),
+            "FR" => $this->configureEuTax(),
+            "DE" => $this->configureEuTax(),
+            "GR" => $this->configureEuTax(),
+            "HU" => $this->configureEuTax(),
+            "IE" => $this->configureEuTax(),
+            "IT" => $this->configureEuTax(),
+            "LV" => $this->configureEuTax(),
+            "LT" => $this->configureEuTax(),
+            "LU" => $this->configureEuTax(),
+            "MT" => $this->configureEuTax(),
+            "NL" => $this->configureEuTax(),
+            "PL" => $this->configureEuTax(),
+            "PT" => $this->configureEuTax(),
+            "RO" => $this->configureEuTax(),
+            "SK" => $this->configureEuTax(),
+            "SI" => $this->configureEuTax(),
+            "ES" => $this->configureEuTax(),
+            "SE" => $this->configureEuTax(),
+            default => $this->noTaxRegionDefined(),
+        };
+
+        return $this;
+
+    }
+
+    private function configureEuTax(): self
+    {
+        $this->provider = EuTax::class;
+
+        // $this->api_credentials = config('services.tax.eu_tax.key');
+
+        return $this;
+    }
+
+    private function noTaxRegionDefined(): self
+    {
+        return $this;
+    }
+
+    private function configureZipTax(): self
+    {
+
+        $this->provider = ZipTax::class;
+        
+        $this->api_credentials = config('services.tax.zip_tax.key');
+
+        return $this;
+
+    }
+
+}
\ No newline at end of file
diff --git a/app/Services/Tax/TaxService.php b/app/Services/Tax/TaxService.php
index 20ef2f042013..678418c240b5 100644
--- a/app/Services/Tax/TaxService.php
+++ b/app/Services/Tax/TaxService.php
@@ -18,101 +18,10 @@ use App\Services\Tax\Providers\ZipTax;
 
 class TaxService
 {
-    private string $provider = ZipTax::class;
-    
-    private mixed $api_credentials;
 
     public function __construct(protected Company $company, protected Client $client)
     {
     }
 
-    public function updateCompanyTaxData(): self
-    {
-        $this->configureProvider($this->provider); //hard coded for now to one provider, but we'll be able to swap these out later
-
-        $company_details = [
-            'address1' => $this->company->settings->address1,
-            'address2' => $this->company->settings->address2,
-            'city' => $this->company->settings->city,
-            'state' => $this->company->settings->state,
-            'postal_code' => $this->company->settings->postal_code,
-            'country_id' => $this->company->settings->country_id,
-        ];
-
-        $tax_provider = new $this->provider($company_details);
-
-        $tax_provider->setApiCredentials($this->api_credentials);
-        
-        $tax_data = $tax_provider->run();
-        
-        $this->company->tax_data = $tax_data;
-        
-        $this->company->save();
-
-        return $this;
-
-    }
-
-    public function updateClientTaxData(): self
-    {
-        $this->configureProvider($this->provider); //hard coded for now to one provider, but we'll be able to swap these out later
-
-        $billing_details =[
-            'address1' => $this->client->address1,
-            'address2' => $this->client->address2,
-            'city' => $this->client->city,
-            'state' => $this->client->state,
-            'postal_code' => $this->client->postal_code,
-            'country_id' => $this->client->country_id,
-        ];
-
-        $shipping_details =[
-            'address1' => $this->client->shipping_address1,
-            'address2' => $this->client->shipping_address2,
-            'city' => $this->client->shipping_city,
-            'state' => $this->client->shipping_state,
-            'postal_code' => $this->client->shipping_postal_code,
-            'country_id' => $this->client->shipping_country_id,
-        ];
-
-
-        $tax_provider = new $this->provider();
-
-        $tax_provider->setApiCredentials($this->api_credentials);
-        
-        $tax_data = $tax_provider->run();
-        
-        $this->company->tax_data = $tax_data;
-        
-        $this->company->save();
-
-        return $this;
-
-
-        return $this;
-
-    }
-
-    private function configureProvider(?string $provider): self
-    {
-
-        match($provider){
-            ZipTax::class => $this->configureZipTax(),
-            default => $this->configureZipTax(),
-        };
-
-        return $this;
-
-    }
-
-    private function configureZipTax(): self
-    {
-
-        $this->provider = ZipTax::class;
-        
-        $this->api_credentials = config('services.tax.zip_tax.key');
-
-        return $this;
-
-    }
+    
 }
\ No newline at end of file
diff --git a/tests/Unit/Tax/ProcessRuleTest.php b/tests/Unit/Tax/EuTaxTest.php
similarity index 93%
rename from tests/Unit/Tax/ProcessRuleTest.php
rename to tests/Unit/Tax/EuTaxTest.php
index f8c00ce48bb0..4db56aad1cff 100644
--- a/tests/Unit/Tax/ProcessRuleTest.php
+++ b/tests/Unit/Tax/EuTaxTest.php
@@ -16,15 +16,15 @@ use App\Models\Client;
 use App\Models\Company;
 use Tests\MockAccountData;
 use App\DataMapper\Tax\de\Rule;
-use App\Services\Tax\ProcessRule;
+use App\Services\Tax\Providers\EuTax;
 use App\DataMapper\CompanySettings;
 use Illuminate\Routing\Middleware\ThrottleRequests;
 use Illuminate\Foundation\Testing\DatabaseTransactions;
 
 /**
- * @test App\Services\Tax\ProcessRule
+ * @test App\Services\Tax\Providers\EuTax
  */
-class ProcessRuleTest extends TestCase
+class EuTaxTest extends TestCase
 {
     use MockAccountData;
     use DatabaseTransactions;
@@ -60,7 +60,7 @@ class ProcessRuleTest extends TestCase
             'shipping_country_id' => 276,
         ]);
 
-        $process = new ProcessRule($company, $client);
+        $process = new EuTax($company, $client);
         $process->run();
 
         $this->assertEquals('de', $process->getVendorCountryCode());
@@ -96,7 +96,7 @@ class ProcessRuleTest extends TestCase
             'shipping_country_id' => 56,
         ]);
 
-        $process = new ProcessRule($company, $client);
+        $process = new EuTax($company, $client);
         $process->run();
 
         $this->assertEquals('de', $process->getVendorCountryCode());
@@ -132,7 +132,7 @@ class ProcessRuleTest extends TestCase
             'shipping_country_id' => 840,
         ]);
 
-        $process = new ProcessRule($company, $client);
+        $process = new EuTax($company, $client);
         $process->run();
 
         $this->assertEquals('de', $process->getVendorCountryCode());