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Which address is considered for Tax calculation in Chargebee?

Problem Statement

This article explains which address Chargebee uses for tax calculation (shipping vs billing) and how to ensure the right address is collected at checkout.

Related Scenarios

  • How is tax calculated in Chargebee?
  • Can the card address be used for tax calculation?
  • How are taxes calculated based on the address provided by the customer?

Solution

Chargebee uses this order for tax calculation: (1) Shipping address, (2) Billing address. Card address is not used. If you collect a shipping address, make shipping address fields mandatory in Checkout so tax is calculated from it. If you do not collect shipping address, make billing address fields mandatory so tax is based on billing address.

For making fields mandatory at checkout, see this video.

Note:

If the customer has both shipping and billing address, the shipping address is used for tax. Only shipping or billing addresses are used for tax; card address is not. Tax is calculated only if tax rates are configured on your site: Settings > Configure Chargebee > Taxes.

When an invoice is generated and paid via account credits, the tax is not added. Why?
What is Tax Amount Withheld or Tax Deducted as Source (TDS)
How to setup Tax amount withheld for TDS?

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