Scope and Applicability:
Applicable for both one-time and recurring products.
Ensures accurate tax application for subsequent transactions involving recurring products.
Requirements for Automatic Taxes:
Valid US state and postal code must be present for the invoice contact.
Each product must have a tax category attached, or a default tax category should be configured in payment settings.
Businesses need to enable address collection during checkout for accurate tax calculations.
How to Enable Automatic Tax Calculations:
Navigate to Payments -> Settings -> Taxes.
Enable automatic tax calculation.
Select nexus addresses/states for tax collection.
Define a default product tax category for all products.
Specify individual product tax categories when creating or editing products under Payments -> Products.