Business users will now be able to calculate taxes automatically for their customers based on address details entered during checkout and the type of product purchased.
This is applicable to all payments being made on order forms (including selling membership courses), online stores, invoices, and payment links. The tax will be dynamically calculated based on the customer’s state and zip code along with the product category.
This works only if the business has enabled address collection during checkout or has a saved address in the contact details in the case of payments being made on invoices. Do not forget to turn on address fields to make tax calculation work accurately.
This works dynamically only for people selling in the US. For other countries, we already support manual tax rates which can be directly attached to products and added to the subtotal during checkout.
Automatic tax calculations can be enabled under Payments -> Settings -> Taxes using the toggle to enable automatic tax calculation. Businesses will be required to select the nexus addresses/states where they want to collect taxes along with defining a default product tax category, which acts as the default category for all your products.
Specific product tax categories for individual products can also be defined separate from the default category while creating or editing products under Payments -> Products.
Taxes are applicable for both one-time and recurring products, and a breakdown of the amount paid will be available on the order details and transaction details page.
