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How to Set Up and Use International Automatic Taxes

Updated over a week ago

International Automatic Taxes in FEA Create automatically calculates VAT and local taxes based on your customer’s address and your business’s obligations. Setting it up ensures your business stays compliant, reduces errors, and makes checkout clear for customers.

It works across all checkout types: Funnels, Payment Links, Invoices, Estimates, and Ecommerce Stores, and works with all payment providers.

Step 1: Access Tax Settings

You need to start in the tax settings because this is where all automatic tax rules are managed and applied across your business.

  1. Go to Payments in your FEA Create dashboard

  2. Click Settings

  3. Select the Taxes sub-tab

Step 2: Decide If Taxes Are Included in Prices

This setting controls whether the product price already includes taxes or if taxes are added on top. It affects the total price your customers see at checkout.

  1. Find Include Tax in Prices

  2. Choose Yes or No

Yes – Tax included in price

  • Total price stays fixed, tax portion changes based on rate

  • Example: Product $100, Tax 20% → Tax $16.67, total $100

No – Tax added on top

  • Tax is added to product price, total changes based on rate

  • Example: Product $100, Tax 20% → Tax $20, total $120

Step 3: Enable Automatic Tax Calculation

Turning on automatic tax calculation ensures taxes are applied correctly at checkout based on customer location and nexus addresses.

  1. Scroll to Automatic Taxes

  2. Toggle Enable automatic tax to ON

Step 4: Select Default Tax Category (Optional)

The default tax category applies to all products that don’t have a specific product-level tax code. This saves time if most products fall under the same category.

  1. Use the Default Tax Category dropdown to select the category

Step 5: Add Nexus Address

Nexus addresses are locations where your business has a tax obligation. Adding them ensures taxes are calculated correctly for each jurisdiction.

  1. Click Add Nexus Address

  2. Select the country or state:

    • US: choose from 58 states

    • Canada: choose from 13 provinces/territories

    • Other countries: select the country

  3. Enter your Tax ID for each location if required (optional)

  4. Click Add

Tip: Deleting a country with states removes its states. Delete countries one at a time.

Step 6: Confirm Taxes at Checkout

Once automatic taxes and nexus addresses are set up:

  • Taxes are applied automatically based on customer address

  • Tax appears as a separate line item

  • Business Tax IDs are applied according to local rules

Step 7: Product-Level Tax Configuration

You can assign specific tax codes to individual products to override the global settings when needed.

  1. Go to Payments > Products

  2. Create a new product or edit an existing one

  3. Scroll to Product Tax Code

  4. Select a Tax Category

  5. Choose Include taxes in prices:

    • As per global settings – follows main toggle

    • Yes – always includes tax for this product

    • No – never includes tax for this product

  6. Click Save

Frequently Asked Questions

Do I need to configure taxes for every country I sell in?
Yes, for accurate calculation.

Can I edit my Tax ID?
Yes, anytime in the Nexus Addresses list.

Does this work with all payment providers?
Yes, all FEA Create payment providers are supported.

Can I bulk-add countries or states?
Yes, use the bulk-add feature.

How are taxes calculated?
Based on customer address, nexus locations, product tax code, and Tax ID.

Which checkout types support automatic taxes?
Funnels, Payment Links, Invoices & Estimates, Ecommerce Stores.

Does this work in India?
No, taxes in India must be configured manually. Consult a tax professional.

Where can I check which Tax Code to use?
Use the View Tax Codes List when assigning product tax codes.

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