Which address is considered for Tax calculation in Chargebee?

Modified on: Mon, 11 Jul, 2022 at 2:17 PM

This article covers 

How is tax calculated in Chargebee?

Can card address be used for tax calculation?

How are taxes calculated in Chargebee based on the address provided by the customer?


Summary 


 Order of address priority set by Chargebee for tax calculation:

  1. Shipping address 

  2. Billing address


Solution


If your business mandates you to collect a shipping address, then you need to make sure that the shipping address fields are made mandatory in Checkout as shown in this video https://www.loom.com/share/dd9da16150804cbcab21cc67a7bd914b


Alternatively, if you do not collect a shipping address, you need to make sure that the Billing address fields are made mandatory at checkout so that the tax is then calculated based on the billing address provided. 


Order of address priority set by Chargebee for tax calculation:


  1. Shipping address 

  2. Billing address 


Note: 
If the customer has a shipping and billing address, then the shipping address will be considered for tax calculation.
Card address fields will not be considered for tax calculation. Only shipping or billing addresses will be taken into account for tax calculation purposes.
The tax calculation will occur only if you have configured tax rates on your Chargebee site. Please navigate to Settings> Configure Chargebee> Taxes for more details.



Related articles and Documentation

How to configure Inclusive or Exclusive taxes in Chargebee?

Managing tax rate changes



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