If the "Use Manual Tax Rates" tax method is set for a buyer company, then the tax rates will be calculated on orders from that buyer company based on the tax rules that you create and manage.
The tax amount of an order is calculated for each line item based on the line item shipping address and if the "Apply Tax" setting is enabled on the price schedule being used.The tax amount of each line item is added together to get the tax amount for the order.
The list of manual tax rules can be accessed by clicking on the "Sales Tax Rates" link in the left navigation bar under the "Admin" top navigation section.
Note: If the shipping address meets the criteria for multiple tax rules, then the tax rate for all of those rules will be applied to the order. For example, if there is a tax rule for the state of MN, and another tax rule for zip code 55344, and the state is MN and the zip code is 55344 of the shipping address on the order, then both of the tax rules will be applied to the order.
Troubleshooting Tip: Tax will only be calculated for products that have "Apply Tax" enabled in the price schedule of the product. If tax is not being calculated on an order, the most likely cause is that "Apply Tax" is disabled for the product(s) on the order. The other likely cause is the shipping address does not match the criteria of any manual tax rules.
Reference Material: none
Related Articles:
Sales Tax Overview
Navigate to Sales Tax Setup
Labels: Sales Tax, Tax Rates, Manual Tax, Tax Methods