Agent WranglersECM-16Recommended
Work out tax from the delivery address
Compute tax on physical goods from the delivery address through your tax service. Compute it again each time the address, the cart or the shipping method changes.
How to do it
For goods, the delivery address decides the tax. In the EU, once your cross-border sales to consumers pass 10,000 euros a year, VAT follows the buyer's country. You report it through the One Stop Shop. That threshold is the same one Charge EU VAT by the customer's country uses for digital services. In the US, most states tax at the delivery address and some tax shipping too. Their thresholds are in Track US sales tax nexus by state. Send the shipping cost as its own line, so the tax service applies the right rule. Use Calculate tax with a tax service instead of rate tables in code. Store the result on the order lines.
How to check
A test changes the delivery address of one cart between two US states and two EU countries. Each change returns a new tax amount from the tax service, and the order stores the last one.
Sources
Related rules
- PAY-48 Charge EU VAT by the customer's country in Payments and billing
- PAY-50 Track US sales tax nexus by state in Payments and billing
- PAY-46 Calculate tax with a tax service in Payments and billing
- ECM-24 Quote the shipping cost before payment from the packed parcel in E-commerce and fulfilment
- ECM-44 Collect tax as the marketplace where the law makes you the seller in E-commerce and fulfilment
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