Feature Update
Business users can now calculate taxes automatically for their customers based on address details entered during checkout and the type of product purchased. This is applicable on all types of payments made on order forms (including the selling of membership courses), online stores, invoices, and payment links. The tax will be dynamically calculated based on the customer’s state and zip code, as well as the product category.
This feature will only work if the business has enabled address collection during checkout, or if a saved address is available in the contact details in the case of payments being made on invoices. It is important to remember to turn on address fields in order for the tax calculation to work accurately.
The dynamic tax calculation is only applicable to those selling within the US. For other countries, Connectly already supports manual taxing rates which can be directly attached to products and added to the subtotal during checkout.
Automatic tax calculations can be enabled under ‘Payments’ -> ‘Settings’ -> ‘Taxes’ by using the toggle to enable automatic tax calculations. Businesses will be obliged to select the nexus addresses/states where they want to collect taxes, in addition to defining a default product taxing category that acts as the default category for all their products.
Specific product tax categories for individual products can also be defined separate from the default category when creating or editing products under ‘Payments’ -> ‘Products’. Taxes are applicable for both one-time and recurring products, and a breakdown of the amount paid will be available on the order and transaction details page.
What’s Next?
The ability to configure whether the tax amount is inclusive or exclusive in pricing is the next feature Connectly is due to release.