Configuring Taxes

Cybersource offers a service that calculates taxes to be charged on orders. You must configure your settings in order to receive accurate results from Cybersource.
Contact your Cybersource representative to have this feature enabled. This feature includes activation of sandbox capabilities as well.
Before configuring the Tax Calculation service, you must have the SOAP Web Service configured. For more information, see Configuring Security Credentials.
To use the Tax Calculation Service, you must have the Product Tax Class codes and Cybersource Tax Services settings configured. For more information, see Configuring Product Tax Classes and Configuring Cybersource Tax Services Settings.

Configuring Product Tax Classes

Each product in the
Adobe Commerce Cloud
 has a setting for Tax Class. This setting defines the product and how it should be taxed. Contact your Cybersource representative for a list of available product tax class IDs and your tax consultant for advice on which IDs you should use for products you sell.
Follow these steps to set the product tax class IDs in
Adobe Commerce Cloud
:
  1. Go the
    Adobe Commerce Cloud
     Admin console.
  2. On the left panel, click
    Stores
    , and then click
    Tax Classes
    .
  3. On the Tax Classes page, click
    Add New
     to create a new tax class entry for each tax class ID that Cybersource representative provides.
  4. In the
    Tax Class Code
     field, enter the code Cybersource provided to you.
  5. From the
    Tax Class Type
     drop-down list, choose
    Product
    .
  6. Click
    Save
    .
  7. Complete these steps for each tax class ID.
Configuring Taxes

Configuring Cybersource Tax Services Settings

Follow these steps to configure Cybersource Tax Services in the
Adobe Commerce Cloud
:
  1. Go to the
    Adobe Commerce Cloud
     admin console.
  2. On the left panel, click
    Stores
    , and then click
    Configuration
    .
  3. On the Configuration page, go to
    Sales
     >
    Tax
     >
    Cybersource Tax Services
    .
  4. From the
    Tax Calculation
     drop-down list, choose
    Yes
     to activate the Cybersource Tax Services per your business requirements.
  5. In the
    Nexus regions
     box, select any relevant regions your business has a physical presence in the U.S. or Canada.
  6. In the
    Customer countries to calculate Tax for
     box, choose the countries for which you will calculate tax.
  7. In the
    Customer Tax classes to exclude from Tax calculation
     box, choose the customer tax classes to exclude from tax calculation.
  8. In the
    Ship From
     fields, enter the city, postcode, country, and region from which the orders are shipped.
  9. In the
    Acceptance
     fields, enter the city, postcode, country, and region in which you will accept or approve customers' orders.
  10. In the
    Origin
     fields, enter the city, postcode, country, and region of the point of origin from which the order is picked up.
  11. In the
    Merchant VAT
     fields, enter the merchant VAT seller registration number.
  12. Click
    Save Config
    .

Calculating Taxes for Shipping Rates

You might have taxes calculated for shipping rates if your site offers dynamic shipping rates from a carrier that is presented to the customer at checkout. However, if you offer a flat-rate shipping charge, you might want to add taxes to that flat rate.
Follow these steps to add taxes to flat shipping rates:
  1. On the Configuration page, go to
    Sales
     >
    Tax
     >
    Tax Classes
    .
  2. From the
    Tax Class for Shipping
     drop-down list, select the product tax code that references the taxes applied to shipping services.
  3. Click
    Calculation Settings
    .
  4. In the
    Shipping Prices
     field, choose
    Excluding Tax
     when the shipping rates offered need to have taxes added to them. Select
    Including Tax
     when shipping rates offered have taxes included, and no taxes will be applied through the Cybersource tax service.
  5. Click
    Save Config
    .
Configuring Taxes