When a customer creates a new shipping address, the way taxes are determined on that address is quite important. The following is how a new ship-to is assigned a tax code or schedule upon creation in a system that is set up for Ecommerce.
- If the new ship-to has the same state/country as the customer's bill-to address, then we use the tax code/schedule of the customer.
- If the above is not true and the state\province of the new ship-to has a tax code/schedule set, then we use the tax code/schedule of the state\province.
- If the above is not true and the country of the new ship-to has a tax code/schedule set, then we use the tax code/schedule of the country.
- If none of the above is true, we use the customer default tax code/schedule from site settings.