Preface
This should not be used for the US - for US tax rates, users should select the US tax option in localisation; tax rates for US billing and delivery address will be managed from here.
If the user needs a US tax rate (in localisation) or tax rates for other countries, this can be configured in collaboration with the Profit Centre
In Settings>Application>
If the State is not a mandatory field, it can result in incorrect tax rates in cases where Profit Centres are configured for States.
Main Use Cases:
Canada:
Canada has different tax rates depending on where the billing region and the delivery region are set, because each of its provinces has different tax rates.
If the billing address is all of Canada (if you have only one place of production in Canada), then the tax rate can change based onthe delivery address:
EU use case:
Due to EU regulations, there can be different rules based on how you tax people across different countries.
Cross-border 0% tax enabled (created for certain EU regulation cases)
If this checkbox is SELECTED, then:
IF NO exact match is found in the Profit Centre configuration (billing and delivery address), AND VAT ID EXISTS for the customer, then VAT will be 0
IF NO exact match is found in the Profit Centre configuration (billing and delivery address), AND VAT ID DOES NOT exist for the customer, then VAT will be set to the default VAT value found in the matching billing address. If no match with the billing address is found, then the default value from localisation will be applied
If this checkbox is DESELECTED, then:
IF NO exact match is found, then the default tax rate from localisation will be applied
Profit Centre ID field:
(Less common use case): If a customer has multiple Cost Centre locations (for example, a finance office in France and one in the UK) then they can change the tax rate based on where the billing will go.
Please remember that the Profit Centre ID and billing region can be applied together in the Profit Centre configuration.
For example:
The user can assign the Profit Centre ID to a regular customer so that they can be billed by the right finance centre and with the right VAT rate for that centre:
Profit Centre field in customer details and ticket details:
If this field is filled out, it will automatically select this Profit Centre option in the Tax configuration option in Profit Centre configuration. It will also prefill the field for the order Profit Centre field in ticket details:
When calculating a tax rate for this customer, the system will look for the tax rates associated with the Profit Centre first and ignore billing address details if a Profit Centre is found.
If no matching Profit Centre is found, it will look for a tax configuration that matches the billing and delivery address next.
If no match is found in the profit centre configuration at all, it will use the default tax value in localisation.