Introduction
The Tax calculator provides the most up-to-date tax amount and tax rate(s) for a product sale based on the address information collected from your customer. The Tax calculator is often utilized for the following situation:
- Expedited calculations for customer address changes — When a customer suddenly updates their address, you may need to quickly recalculate tax without processing a full transaction, as different jurisdictions have vastly different rates and rules. The Tax calculator allows you to immediately inform the customer of the new total and avoid billing surprises.
- Onboarding large customers — Before finalizing contracts with major clients, you may need detailed cost projections, including taxes, for budgeting and internal approvals. The Tax calculator can help provide accurate quotes based on the customer's location and specific products, building trust and facilitating the sales process.
- Validating tax configuration changes — Tax rates and product taxability rules change regularly, which may encourage you to verify that your automated systems are updated correctly. Using the Tax calculator for manual spot-checking helps catch configuration errors before they result in under/over charging tax.
- New product launch tax modeling — Before launching new products, you may need to understand tax implications across all operating jurisdictions, as different product categories have dramatically different tax treatments. Using the Tax calculator for manual calculation helps accurately price products, understand margins, and ensure correct tax collection from launch.
By leveraging this tool, you can make informed decisions quickly, maintain customer trust through transparent pricing, and minimize compliance risks before transactions are finalized.
Note
The Tax calculator's calculations are based on your status in the jurisdiction, whether tax calculation is enabled in the jurisdiction, and the tax configurations selected for your product IDs on your Anrok account. If you haven’t completed a registration in a jurisdiction or requested Anrok to enable tax calculation before registration, all products will be considered non-taxable.
Tip
We encourage you to provide as much address information as you have available for each transaction. While Anrok can attempt to calculate tax with less address information, providing more address details leads to more accurate tax calculations. Common address fields include street address, city, state/region, ZIP/postal code, and country code. See Address information required to calculate tax.
Use the Tax calculator
You can use the Tax calculator to quickly calculate the applicable tax rate and tax amount for a transaction based on the customer's address and your pricing model.
Try using the Tax calculator in the demo above ☝️
- In the Anrok app
, go to Tax calculator. Take me there!
- Under Customer address, select the applicable Country, then enter the following:
- Street address
- City
- State / Province / Region
- Postal code
- If the transaction is in a global jurisdiction, under Additional customer information, select whether the Customer has a valid VAT ID in country of sale.
- Under Product sales, select the Product being purchased, and then enter the Total sales for the product.
- If the transaction is in a global jurisdiction, select whether you are using Tax inclusive pricing.
- When you are finished, click Calculate.