Overview
With the latest update to our Taxes feature, we support multiple Jurisdictions for a tax region, so you'll now be able to create and choose which county/city/regional taxes to apply on a Quote. You can also set a default Jurisdiction for each region to save time when adding your most commonly applied taxes.
There are now two components to Taxes: Tax Codes and Jurisdictions, which are outlined below.
Tax Codes
Tax Zones have been replaced by individual Tax Codes, which you can group together as part of a Jurisdiction. Each Tax Code represents an individual tax with a percentage amount, name, and (optional) tax number.
Jurisdictions
A Jurisdiction is an optional grouping of Tax Codes by region (country or state/province). You can create multiple Jurisdictions for the same regions and choose between them when making a Quote, which will apply the Tax Codes in that Jurisdiction to the total. You can also set a Default Jurisdiction which will be selected by default for all Quotes in that region.
Adding a Tax Code
Under Settings > Taxes, click New Tax Code. This will bring up the Tax Code window:
Enter the name of the Tax Code in the Tax Code field. This will be displayed on the Quote.
Add the Country and, if needed, the Province/State(s) to which the code will apply. Please note that adding multiple countries will prevent you from specifying a Province/State.
If only one Country or Province/State has been added, you may create or select Jurisdictions for that Tax Code. Please see the Adding Jurisdictions section for more info about creating Jurisdictions.
Enter the Rate that will be used and, if necessary, a Tax Number. These will be shown on the Quote to the customer.
Optionally, you may choose for the Tax Code to apply to Shipping fees.
Note: This setting cannot be changed when making a Quote so please make sure it has been set correctly here :)
Finally, setting the Tax Code to Default Included will ensure that the Tax Code is applied by default on the Quote. If disabled, you will need to manually turn on the Tax Code when making the Quote in order for it to be applied.
Click Save to save your Tax Code.
With your Tax Codes created, they will now appear when creating all Quotes with addresses in that region. This will also give you the option to include the individual Tax Codes for that Quote by toggling the Include button:
Note: If you have a Jurisdiction that includes those Tax Codes and it's set as the Default, it will be selected automatically. Selecting No Jurisdiction will show only Tax Codes that are not part of an existing Jurisdiction.
Adding Tax Lines
If you want to apply a Tax that applies to only the Quote you are making, you can simply click Add Tax Line to create an ad-hoc Tax:
As with Tax Codes, you can enter the name, rate, Tax Number, and whether it's included or not. You can also delete a Tax Line by clicking the red X.
Note: We strongly recommend creating Tax Codes in advance as ad-hoc Taxes may not push correctly to your integrations.
Adding Jurisdictions
First, navigate to Settings > Taxes and click New Jurisdiction. This will bring up the Tax Jurisdiction window:
Enter the Country and Province/State for the Jurisdiction. Both fields are required.
In the Jurisdiction field, enter the name of the Jurisdiction. You can add multiple Jurisdictions for the same region by clicking the blue plus icon and adding more names.
Select Default for Prov/State next to the desired Jurisdiction name if you want it to be automatically chosen when creating a Quote.
Note: Only one Jurisdiction can be set as the default for each Province/State. If a Jurisdiction is created as part of adding a Tax Code, it will not be set as the default unless changed afterwards.
Click Save to save the Jurisdiction.
Once you've created your Jurisdiction, they must be added to existing Tax Codes by navigating to Settings > Taxes > Tax Codes and clicking the appropriate Tax Code. You can add existing Jurisdictions from a drop-down menu as shown here:
Or, you can create a new Jurisdiction by simply entering a name:
If you have multiple Jurisdictions that apply to a region, you will be able to select which Jurisdiction applies on the Quote. The Default Jurisdiction will be the one automatically selected, but this can be changed on the Quote Create screen:
Note: Jurisdictions with no Tax Codes applied will not be displayed in the drop-down menu.
Additional Notes:
Taxes cannot be entered as negative value (e.g., -10%).
Your existing Tax Zones will automatically be added as Tax Codes so you shouldn't need to re-enter any existing data.
Depending on your integrations, you may need to remap your Tax Codes in your integration settings. For more information, see this article.
Have fun!