For users in the US, Canada, Australia and Europe, StoreFront calculates the tax rates automatically based on the store and customer's location. Upon checkout, the customer will be charged a proper tax rate according to country and regional tax rules.
Tax laws are constantly changing. Country, state or even city government may apply new tax rates that a business owner is expected to keep up with. StoreFront will always stay up to date on the tax law.
Configure Automatic Tax Calculations
To configure automatic tax calculations:
- In the left panel click eCommerce, and then click Manage Store.
- Click Settings, and then click General.
- Scroll to Company Address and enter the company address in the fields provided. This address is needed to calculate and apply the correct tax rate to the order at checkout.
- Click Save.
- Click Taxes in the left panel.
- Enable Automatic tax rates.
Once enabled, the automatic tax rate will determine a precise tax rate at checkout depending on where you and your customer are located. The tool knows the tax rules in your country, state and even county and city and applies them properly to each order:
- Whether you are located in a region with origin-based or destination-based tax schema.
- Whether shipping cost or discounts are taxable.
- Whether you should charge tax in another state or country not.
The tax rate is calculated with a zip code accuracy. If your customer provide zip+4, it will be calculated with even higher precision. In some states (and the number of such states is growing), the tax is calculated with a street address level precision.