Calculating US and Canadian Tax

To receive the most accurate tax calculation, you will need specific information for the field values. Follow these steps to determine the values for the fields.
One tax service request should not include more than 50 line items. When you send a request with more than 50 line items, the request could time out.
The Tax Calculation Service uses line-level rounding.  Tax amounts for each jurisdictional detail will be rounded and then aggregated to the line. For example, 8.5% total tax that includes 1.25% city tax, 1.25% county tax, and 6% state tax, levied on a 10.00 item would result in a total tax of 0.86 based on amounts of 0.13 city tax, 0.13 county tax, and 0.60 state tax. 

Step 1: Nexus

Identify the location of your company’s nexus. Products are taxable only when the customer’s 
shipTo_state
 field value matches a state or province in which your company has nexus. If the ship to fields are not included in the request, the service will use the bill to fields to determine the tax amount. Use the 
taxService_nexus
 field to list the states or provinces in which your company has nexus. Alternatively, you can use the 
taxService_noNexus
 field to list states that should not be taxed.
You cannot combine the 
taxService_nexus
 and 
taxService_noNexus
 fields in the same request.
When you do not specify your nexus locations, the tax calculation service processes your request as if every state or province is taxable.
  • When you do not specify your nexus locations, or when a value of the nexus field matches the value for the 
    shipTo_state
     field, the service calculates the applicable tax for the product.
  • When the value for the 
    shipTo_state
     field does not match any state or province where you have nexus, the service assigns zero tax.
For more information, see Tax Nexus.

Step 2: Product Codes

If the product has special tax considerations, you can provide the appropriate tax product code in the 
item_#_productCode
 field in the request.
For more information, see Product Codes.

Step 3: Addresses

To receive the most accurate tax calculation possible, include the following address information in the request:
  • Ship-to address, in fields in the 
    shipTo
     fields group. When multiple cities are within a postal code area, the optional request field 
    shipTo_city
     value improves the accuracy of the calculated tax. 
  • Product code, in the 
    item_#_productCode
     field.
  • Nexus, in the 
    taxService_nexus
     field—or if it is easier, you can use the 
    taxService_noNexus
     field to provide a list of states in which you do not have nexus. 
When the tax calculation service succeeds, the response includes the 
taxReply_grandTotalAmount
 field.
For more address-related information, see Address Requirement.

Step 4: When to Calculate Tax

Determine when you will provide tax calculations during the customer transaction. Tax calculation can occur before or after determining the final order total. See Tax Reporting to know how this service can impact when you would want to request the tax service.
For more information, see When to Calculate Taxes.

Endpoint

Set the
taxService
 field to
true
.
Send the request to
https://ics2ws.ic3.com/commerce/1.x/transactionProcessor
.