We're excited to announce a new feature that makes tax management more streamlined and accurate for businesses operating globally. By configuring and applying automatic taxes, including VAT, across multiple countries, you can ensure compliant, precise tax calculations for all international checkouts.
Multi-Country Tax Configuration: Businesses can now select multiple countries for automatic tax calculations. Additionally, they can add VAT IDs or local tax ID numbers for each region.
Nexus Address Management: Easily configure and manage nexus addresses. This determines tax obligations across various geographies, ensuring all implications are accurately captured.
Automatic Tax Application: Taxes will automatically apply to checkouts and invoice payments based on the customer’s address. This feature supports all checkout types, including Funnels, Payment Links, Invoices, Estimates, and Ecommerce Stores through all payment providers.
Product-Level Tax Configuration: Enable global automatic tax settings at the product level, simplifying your financial operations.
Comprehensive Country List: A detailed list of countries where automatic tax calculations work is available in the Nexus Addresses section. Ensure you add every country where tax collection is necessary—adding U.S. and Canadian states as needed.
Efficient Country/State Management: Bulk actions allow adding multiple countries or states efficiently. Note, each deletion must be individual, but removing a country will also remove its states from the nexus list if listed separately.
Business Tax ID Utilization: Plug in your Tax ID while adding a nexus address to leverage any tax benefits or applications. These can be edited as needed.
Guided Migration: A migration flow is available in the current tax settings UI, simplifying the transition to the global system.
Reconfiguration Required: Update nexus addresses and auto-tax settings for all accounts and products. The previous U.S. Auto Tax system will be deprecated within six months, with clear transition guidance.
Business Identification Capture: Soon, businesses can capture identification numbers or tax IDs during checkout for refined tax calculations based on category and address.
Customizable Product-Level Taxes: Options for enabling or disabling automatic taxes at the product level will enhance flexibility.
Cross Border Tax Solutions: Developments are underway for managing cross-border taxes, addressing international product transactions and custom duties.
Global Setting: Access via Payments > Settings > Taxes > Automatic Taxes.
Product-Level Setting: Modify under Payments > Products > Edit/Create > Product Tax Code.
Stay compliant and efficient in your global operations with our new International Automatic Taxes feature. For further inquiries or support, please feel free to contact us or explore our comprehensive support resources.
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