Business can now
configure and apply automatic taxes for multiple countries
including and outside the United States, ensuring accurate, compliant tax calculations across global checkouts.What's New?
- Businesses can select multiple countries for automatic tax calculation and also add country-specific VAT IDs or local tax ID numbers.
- Businesses can configure and manage nexus addresses to determine tax obligations in different geographies.
- Taxes are automatically applied on checkouts and invoice payments based on the customer’s address.
- Applicable across all checkout types — Funnels, Payment Links, Invoices, and Estimates, Ecommerce Stores— for all payment providers.
- Product-level configuration now supports global auto taxes.
- List of countries where automatic tax calculations would work is available in the list of Nexus Addresses.
- Any country where the business is required to collect taxes should be added to the list of nexus addresses. In case of US & Canada, respective states should be added wherever tax calculation is required.
- Adding countries/states can be done as a bulk action by selecting multiple countries/states in one go.
- Deleting countries/states need to be an individual activity but deleting a country with states separately added like Canada, will also delete the status from the list of Nexus address.
- A business can also plug in their Tax ID when adding a nexus address for a country- If there are additional tax benefits or applications based on the ID, it would be considered on the checkouts while calculating the taxes.
- This business Tax IDcan be edited from the list of configured nexus addresses.
For Existing US Automatic Tax users:
- A guided migration flow is made available in the same tax setting UI.
- Can Reconfigure the new global system via the UI.
- Will need to reconfigure nexus addresses and auto tax settings for all accounts and products.
- Deprecation plan in place for the old US Auto Tax system in 6 months with clear warnings and fallback behavior.
What's Next?
- Capturing Business identification numbers or relevant tax IDs on all checkouts in case the end customer is a business to recalculate taxes based on the tax category, address as well as the business id.
- Enabling/Disabling automatic taxes on a product level.
- Cross border taxes (Custom Duty taxes) - In case a product is purchased and sold in different countries
Where can I configure automatic taxes
- Global tax setting - Payments > Settings > Taxes > Automatic Taxes
- Product level settings - Payments > Products > Edit/Create > Product Tax Code
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