Configuring International Automatic Taxes

Automatic tax calculation helps businesses stay tax compliant by applying taxes based on the customer’s location during checkout or invoicing. The platform now supports automatic tax calculation for multiple countries — including the United States, Canada, countries within the EU and other international markets — ensuring seamless and accurate tax management.

This article explains how to enable automatic taxes, configure nexus addresses, add tax IDs, manage product-level tax codes, and check how taxes appear at checkout.

Overview

Automatic taxes calculate and apply the correct tax amount to a customer’s purchase based on their billing or shipping address. Businesses can configure the countries (and, for the US and Canada, specific states or provinces) where they’re registered to collect taxes. Businesses may also associate tax identification numbers (VAT IDs, GST numbers, or local tax IDs) for those locations if applicable.

Once configured, taxes are applied automatically across the below checkouts for all payment providers:

• Funnels

• Payment Links

• Invoices & Estimates

• Ecommerce Store 

How to Enable and Configure Automatic Taxes

Step 1: Access Tax Settings

1. Go to your platform dashboard.

2. Navigate to Payments > Settings > Taxes > Automatic Taxes.

Step 2: Add Nexus Addresses

A nexus address determines where your business is obligated to collect taxes.

To add nexus addresses:

1. In the Automatic Taxes section, select + Add Nexus Address.

2. Choose one or more countries from the available list.

   • For the United States and Canada, individual states or provinces can also be selected.

   • Multiple countries or states can be added in one action.

3. (Optional) Enter your Tax ID for each country or state. This ID will be considered during tax calculation at checkout if required by local regulations.

4. Click Add Nexus to save.

? Note:
When removing nexus addresses:

• Deleting a country that has its states individually added (e.g., Canada) will also remove those states from the list.

• Deleting countries must be done one at a time.

Step 3: Assign Product Tax Category/Code

Some products may have specific tax rates or exemptions based on their type and region. Assigning product tax codes ensures the correct tax rules are applied during checkout.

To assign tax codes:

1. Go to Payments > Products.

2. Click Edit on an existing product or Create a new one.

3. Scroll to the Tax Settings section.

4. Enter the appropriate Product Tax Code for the item.

5. Save your changes.

Alternatively, you can assign a default Tax Category/Code for all products by navigating to the UI right before nexus addresses. This category will be used if auto taxes are enabled but nothing specific is selected under the Product Tax Code on the product level. A product level tax code will over-write this global setting, if configured.

Step 4: Confirm Taxes on Checkout

Once automatic taxes and nexus addresses are configured:

• Taxes are applied automatically at checkout and on invoice payments based on the customer’s address.

• The applied tax amount appears as a distinct line item on the customer’s payment summary.

• If a business Tax ID is configured for a region, it is considered in the tax calculation as per local tax rules.

Where to Configure Automatic Taxes

• Global Tax Settings:
  Payments > Settings > Taxes > Automatic Taxes

• Product-Level Tax Codes:
  Payments > Products > Edit/Create Product > Product Tax Code

? Applying Automatic Taxes on Invoices

In addition to checkout pages , automatic tax calculation is also supported for Invoices. Taxes on invoices are calculated based on the global tax configuration, but can be enabled or disabled for each individual invoice as needed.

How It Works:

• When creating or editing an invoice, businesses can enable or disable automatic tax calculation for that specific invoice.

• If enabled, the system will use:

  • The global nexus addresses configured in Payments > Settings > Taxes > Automatic Taxes.

  • Any business Tax IDs added for those locations.

  • The customer’s billing address on the invoice.

  • The Product Tax Codes assigned to each product included in the invoice.

The tax amount is then automatically calculated and added as a separate line item on the invoice total.

Where to Enable Automatic Taxes on an Invoice:

1. Go to Invoices in your dashboard.

2. Create a new invoice or edit an existing draft.

3. In the Tax Settings section of the invoice editor, toggle Automatic Tax ON or OFF.

4. If enabled, taxes will be calculated dynamically based on the global and product-level tax settings already configured.

? Note:
If automatic taxes are disabled for a particular invoice, no automatic tax calculation will be applied — and any taxes must be manually added as custom line items if required.

⚠️ Compliance Reminder

It is your responsibility to comply with applicable tax laws in each jurisdiction where you collect taxes.

❓ Frequently Asked Questions

1️⃣ What is a Nexus Address?

A nexus address represents a country, state, or province where your business has a tax collection obligation. Taxes will only be calculated for customer addresses in regions where you have added a nexus address.

2️⃣ Do I need to add a Tax ID for each country?

Adding a tax identification number (VAT ID, GST number, or local tax ID) is optional but recommended. In regions where a tax ID impacts the tax calculation or benefits (like VAT exemptions), this information will be considered automatically during checkout.

3️⃣ Can I add multiple nexus addresses at once?

Yes — multiple countries and US/Canadian states can be added in one action when configuring nexus addresses.

However, deleting countries or states must be done individually. If you delete a country like Canada, any associated states added separately will also be removed.

4️⃣ How does tax calculation work at checkout?

Taxes are calculated automatically based on:

• The customer’s billing or shipping address.

• The configured nexus locations.

• The product’s assigned tax code.

• Any associated Tax ID, if applicable.

The tax amount appears as a separate line item in the final order summary.

5️⃣ Which payment providers and checkout types support automatic taxes?

Automatic tax calculation works across:

• Funnels

• Payment Links

• Invoices & Estimates

• Ecommerce Store checkouts

and is supported for all integrated payment providers.

6️⃣ Where can I find the list of supported countries for automatic tax calculation?

The list is available inside the + Add Nexus Address menu when configuring automatic taxes. Select from the dropdown or search by country/state name.

7️⃣ Does automatic tax calculation work in India?

No — automatic tax calculation is currently not supported in India. Taxes for transactions in India must be handled manually by configuring tax rates within your product and checkout settings, or by including tax amounts directly in your product pricing.

We recommend consulting a tax professional to ensure compliance with India’s GST and tax invoicing regulations.

8️⃣ Where can I check which Tax Code to use for different tax categories?

A complete list of tax categories and their corresponding Tax Codes is available for reference. This helps ensure you assign the correct code to each product based on how it's taxed in different regions.

You can view the tax category and code mapping here: View Tax Codes List

Use this list while assigning Product Tax Codes in your product settings to ensure accurate tax calculation during checkout and invoicing.

Note on Migration for Existing US Auto Tax Users

Accounts previously using the US-only automatic tax system can transition to the global tax system via a guided workflow in the Automatic Taxes settings page.

To migrate:

• Reconnect to the new global system.

• Reconfigure your nexus addresses and tax IDs.

• Use the Bulk Product Edit Tool to quickly apply tax settings across multiple products.

Important:
The old US-only tax system will be deprecated, and accounts not migrated in time will have automatic tax calculations disabled until reconnected.