Set up and use international automatic taxes

Turn on automatic tax calculation for international transactions from Payments > Settings > Taxes: enable the Automatic Taxes toggle, choose whether prices include tax, and add the nexus addresses where your organization owes tax. JourneyCARE then calculates VAT and other local taxes at checkout and on invoice payments based on the customer's address and the tax obligations you configure.

What automatic taxes do

Automatic taxes calculate VAT and other local taxes for you on every eligible checkout, so customers in different regions are charged the correct amount without manual rates per country. The applied tax appears as a distinct line item in the customer's payment summary at checkout and on invoice payments.

Tax is calculated from the customer's billing or shipping address, your configured nexus locations, the product's assigned tax code, and any associated Tax ID. A regional Tax ID you enter for a nexus address is factored into the calculation where local rules require it.

Supported checkouts

Automatic taxes work across every supported checkout type and are compatible with all payment providers.

• Funnels

• Payment Links

• Invoices & Estimates

• Ecommerce Store checkouts

Enable automatic taxes

Set up automatic taxes from the Taxes settings inside Payments. You need at least one nexus address before taxes can be calculated, which you add after enabling the toggle.

1. Open Payments from the left-hand menu.

2. Click the Settings tab.

3. Select the Taxes sub-tab.

4. Locate Include Tax in Prices.

5. Select Yes or No. Yes keeps the final product price fixed and includes the tax in that price, so the tax amount varies with the rate while the total stays the same. No keeps the product price separate and adds the tax on top of it.

6. Scroll to the Automatic Taxes section.

7. Turn Enable automatic tax ON.

8. Optionally select a Default Tax Category that best matches your products. A tax category selected on an individual product overrides the default.

Tax-inclusive vs tax-exclusive examples

With Include Tax in Prices set to Yes, the total stays fixed at the product price and only the tax amount changes with the rate. For a product priced at $100:

With Include Tax in Prices set to No, the tax is added on top of the product price. For a product priced at $100:

For more on how the two models affect discounts and existing transactions, see Set tax-inclusive or tax-exclusive pricing.

Add nexus addresses

Nexus addresses define where your organization has a tax obligation, and taxes are applied based on the customer's address. Add every country (or state, for the US and Canada) where you have an obligation so taxes are calculated correctly.

1. Click Add Nexus Address.

2. From the dropdown, choose County/Countries. For the United States, choose from all 58 states. For Canada, choose from 13 provinces or territories. For other countries, selection is country-specific only.

3. Optionally enter a Tax ID for each country or state. It is considered during tax calculation at checkout if required by local regulations.

4. Click Add to save the nexus address.

Add multiple countries or states at once with the bulk-add feature. The supported-country list is available inside the + Add Nexus Address menu, where you can select from the dropdown or search by country or state name.

To manage nexus addresses, delete countries one at a time. Deleting a country that has individually added states, such as Canada, also removes those states from the list. Tax IDs can be edited at any time from the Nexus Addresses list, and you can add or remove locations as your organization expands or contracts. Manual tax rates work as a fallback when automatic taxes are enabled; see Add taxes for how the two interact.

Set product-level tax categories

Override the default tax category for a single product when it should be taxed differently from the rest of your catalog.

1. Go to Payments > Products.

2. Click Create Product, or click the three-dot menu next to an existing product and choose Edit.

3. Scroll to the Product Tax Code section.

4. Select a Tax Category for the product from the dropdown.

5. Under Include taxes in prices, choose As per global settings, Yes, or No. As per global settings inherits the global toggle behavior; Yes always includes tax for this product regardless of global settings; No never includes tax regardless of global settings.

6. Click Save.

If no tax code is set on a product, the system falls back to the default code defined in your global tax settings.

Frequently asked questions