Setting Up and Using International Automatic Taxes

Introduction

International Automatic Taxes is a feature that allows businesses to automatically calculate and apply appropriate taxes, including VAT, for customers in different countries and regions. This ensures accurate and compliant tax handling during checkout processes for global sales.

Key Benefits

This feature offers several advantages for managing international sales tax compliance:

• Automatically calculates the correct tax amount based on customer location
• Supports VAT and other local tax types across multiple countries
• Works with all checkout methods including funnels, payment links, invoices, and e-commerce stores
• Allows you to specify where your business has tax obligations (nexus addresses)
• Provides product-level tax configuration for precise control
• Integrates with all payment providers supported by the CRM

Setting Up Automatic Taxes

Follow these steps to configure international tax calculations for your business.

Step 1: Access Tax Settings

Navigate to the Payments section from the main menu, then click on the Settings tab. Select the Taxes sub-tab to access tax configuration options.

Step 2: Configure Tax Inclusion

Locate the option to include tax in prices. You can choose between two approaches:

• Yes - Tax is included in the displayed product price. The final price remains fixed while the tax amount varies based on the tax rate.
• No - Tax is calculated separately and added to the product price at checkout.

Step 3: Enable Automatic Tax Calculation

Scroll to the Automatic Taxes section and toggle the setting to enable automatic tax calculation.

Step 4: Set Default Tax Category (Optional)

Select a default tax category that best represents your products from the dropdown menu. Individual product tax settings will override this default if configured.

Step 5: Add Nexus Addresses

Click Add Nexus Address to specify locations where your business has tax obligations. You can select entire countries or specific states/provinces for supported countries. For each location, you can enter a tax ID if required by local regulations.

Step 6: Confirm Tax Application

Once configured, taxes will automatically apply during checkout and invoice payments based on the customer's address. The tax amount will appear as a separate line item in the payment summary.

Product-Level Tax Configuration

For precise tax control over individual products:

1. Go to Payments > Products
2. Create a new product or edit an existing one
3. Locate the Product Tax Code section
4. Select a specific tax category for the product
5. Choose how taxes are included for this product (follow global settings, always include, or never include)
6. Save your changes

Products without specific tax settings will use the default tax category defined in your system.

Important Note: You are responsible for ensuring compliance with all relevant tax regulations in jurisdictions where you collect or remit taxes.