In the Tax tab you set the method by which tax will be calculated for the order.
To set tax for delivery:
1. In the Delivery Setup page, click the Tax tab.
2. Define the Mailing Tax Method by selecting one of the following options from the Tax calculated by list:
– Billing Address: When you select to calculate the tax by a Billing Address, only the tax rates that are applicable for the location of the billing address are added to the product's price.
Billing Address is the only option available for Composite and static products and for Dynamic products that don't use a recipient list.
– Recipient Address (Nexus): When you select this option, tax rates that are applicable for each recipient address are added to the product's price. If a mailing list service such as USDATA is used, only tax rates that are applicable for the billing address will be charged, even if the option Recipient Address (Nexus) was selected.
3. In the Shipping Tax Method, the only tax calculation method is Shipping Address. This means that the tax of all items in the order will be calculated according to the tax regulations of the shipping address.