Use Automatic Tax Rates in the US and Canada

Overview

Instead of entering a fixed percentage, you can let Foxy look up the correct rate automatically based on the customer's location. This covers the built-in Foxy default option for the United States and Canada. For EU VAT see Set up EU VAT; for full tax services see Third-party tax services overview.

How to set it up

1. 1

   Go to the Foxy admin.

2. 2

   Go to Settings -> Taxes and create or edit a Country or Regional tax.

3. 3

   Turn on Calculate tax automatically.

4. 4

   Set Service provider to Foxy Default (Thomson Reuters; others).

5. 5

   Apply the tax to your categories. See Apply a tax to a category.

With automatic calculation on, you do not enter a manual rate, and whether the tax applies to shipping is also determined automatically.

Notes

• As an example, a California tax set to calculate automatically uses the customer's ZIP code and city to apply the appropriate combined rate (state, county, city, and other jurisdictions).

• The database is provided by Thomson Reuters ONESOURCE and updated monthly. Foxy uses one of two approaches: a city-level lookup (the default, more accurate option, where the customer selects their city after entering a ZIP code), or a single rate per ZIP code (used when ZIP-to-city autocompletion is disabled in the template configuration; where a ZIP has multiple rates, the more populated area's rate is used).

• Neither Foxy nor the data provider warrants the accuracy of returned rates, though corrections are usually applied quickly.

Report an incorrect tax rate

1. 1

   Note the Foxy transaction ID and the shipping ZIP code (or billing ZIP if there is no shipping address).

2. 2

   Find at least one third-party reference for the rate you believe is correct, ideally an official state source.

3. 3

   Contact Foxy support with the transaction ID, ZIP code, and links showing the correct rate.

Foxy alerts the data provider, and the rate is typically corrected on the next monthly update. If this uncertainty is a problem, consider a full tax service.