Automatic Tax Calculation on Mobile

What is Automatic Tax Calculation?

Automatic Tax Calculation is a feature that allows you to accurately calculate and apply taxes when creating invoices, processing point-of-sale transactions, or generating estimates directly from your CRM mobile app. This system uses your configured tax settings, customer location information, and product tax categories to determine the correct tax rates automatically, reducing manual effort and improving compliance.

Key Benefits

• Automated Calculations: Taxes are calculated instantly based on customer address and your pre-configured tax settings.
• Improved Accuracy: Minimizes human error associated with manual tax entry.
• Global Compliance: Supports tax calculations across multiple countries and regions.
• Time Savings: Eliminates the need to manually apply tax rates for each transaction.
• Product-Level Flexibility: Assign specific tax codes to individual products for precise tax handling.

Configuring Product Tax Codes

To ensure accurate tax calculation, assign tax codes to your products. This determines how each item is taxed based on jurisdiction. You can select a tax code when creating or editing a product. If no code is manually selected, the system may use default tax configurations.

Enabling Automatic Taxes on Mobile

To activate automatic tax calculation for mobile transactions:

1. Open your CRM mobile app
2. Navigate to Payment Settings
3. Locate the Automatic Taxes toggle
4. Enable the toggle to activate the feature

Address-Based Tax Calculation

Tax calculations rely heavily on the customer's address. The system matches the address with your configured nexus locations to determine the correct tax rates. If the address is missing or incorrect, taxes may not calculate properly. You can edit address details during invoice review if needed.

Invoice Tax Review

When creating invoices, the system automatically displays calculated taxes in the invoice summary. You may see multiple tax components (such as state, city, or special taxes) depending on your location settings. Taxes can be included in or added on top of the subtotal based on your configuration.

Setup Process

Step 1: Configure Automatic Taxes (Web)

1. Go to Payments → Settings → Taxes → Automatic Taxes
2. Add your nexus locations (countries/states where you collect tax)
3. Enter your Tax IDs for each applicable region
4. Save your configuration

Step 2: Enable on Mobile

1. Open your CRM mobile app
2. Navigate to Invoices or POS
3. Tap the "+" (Create) button to start a new invoice
4. Tap the settings icon (top-right corner)
5. Toggle Automatic Taxes ON

Step 3: Create Invoice with Automatic Taxes

1. Add products or custom items to the invoice
2. Ensure products have tax codes assigned
3. Enter or confirm the customer's address
4. Review the invoice summary and verify automatic tax calculation
5. Tap Send

Frequently Asked Questions

Do I need to configure taxes on web before using this feature on mobile?

Yes, Automatic Taxes requires prior setup on web, including nexus locations and tax IDs.

What happens if a product does not have a tax code?

The system may use a default tax configuration, but assigning a product tax code ensures more accurate results.

Can I still apply taxes manually?

Yes, manual tax options may still be available, but Automatic Taxes is recommended for accuracy and efficiency.

Why are taxes not showing on my invoice?

This may be due to missing customer address details, disabled Automatic Taxes, or incomplete tax setup.

Can I edit the customer address after creating the invoice?

Yes, the address can be edited during the invoice review step.

Does this work for POS and Estimates as well?

Yes, Automatic Taxes applies to invoices, POS transactions, and estimates.