How to Enable Automatic Sales Tax Calculations

The FG Funnels system is now able to calculate sales taxes automatically for your customers based on the address details they entered during checkout, and the type of product they purchased. This enables businesses to configure and apply automatic tax calculations(including VAT), across multiple countries and regions, ensuring accurate, compliant global checkouts.

What are International Automatic Taxes?

International Automatic Taxes is a feature that automates tax calculation for businesses operating in multiple countries. It supports VAT and other local tax types, automatically applying the correct taxes at checkout or invoice payment based on the customer’s address and your business’s tax obligations. This feature works across all checkout types, including Order Forms on Funnel and Website pages, Payment Links, Invoices, Estimates, and Online Stores, and is compatible with all payment providers.

Key Benefits of International Automatic Taxes

International Automatic Taxes streamlines global tax compliance and simplifies the checkout process for both businesses and customers. Here’s how it helps:


  • Ensures accurate, compliant tax calculations for multiple countries, including VAT and local taxes.
  • Supports bulk addition of countries or states where your business has tax obligations.
  • Automatically applies taxes based on customer address, reducing manual errors.
  • Allows entry and management of country-specific VAT IDs or local tax IDs for optimized tax handling.
  • Works seamlessly across all checkout types and payment providers in FG Funnels.
  • Enables product-level tax configuration for granular control.
  • Provides a guided migration flow for existing US Automatic Tax users.
  • Centralizes tax settings for easy management and updates.

Please Note:

The taxes will only be automatically calculated if you have enabled address collection during checkout, or if you have a saved address on the contact's record in the case of payments being made on invoices. Please do not forget to turn ON the address field on your order forms, and in your online store, in order for tax calculation to work accurately.


You will be required to select the Nexus addresses/states where you want to collect sales taxes, and select a default product tax category, which will act as the default category for all of your products.


The taxes will be applicable for both one-time and recurring products. A breakdown of the amount paid will be available on the order details page ( Payments > Orders ) and transaction details page ( Payments > Transactions ).

How to Enable Automatic Sales Tax Calculations


Setting up International Automatic Taxes ensures your business remains compliant and your customers are charged the correct tax amounts.

Please Note: It is your responsibility to comply with all relevant tax regulations in each jurisdiction where taxes are collected or remitted.


1) Go to Payments > Settings > Taxes.


  1. Locate the Include Tax in Prices option.

  1. Select Yes or No depending on whether you want to have taxes included in prices or not included in prices.
    • Yes - This ensures taxes are always included in product price. The final total product price is fixed and the tax amount would vary on the tax rate but always calculated
    • For example: You set the product price as $100. Now on the checkout if the tax rate determined is:
      • 10%, then the tax amount would be $9.1, while the total price with taxes remains as $100
      • 0%, then the tax amount would be $0, while the total price with taxes still remains as $100
      • 20%, then the tax amount would be $16.67, while the total price with taxes remains as $100
    • No - Select this option if you want product price to be a separate entity from taxes i.e. whatever is the tax amount should be additional to this price.
    • For example: You set the product price as $100. Now on the checkout if the tax rate determined is:
      • 10%, then the tax amount would be $10 and the total price with taxes now becomes $110
      • 0%, then the tax amount would be $0 and the total price with taxes remains as $100
      • 20%, then the tax amount would be $20 and the total price with taxes now becomes $120

2) Scroll down to the "Automatic taxes" section.


3) Toggle ON the "Enable automatic sales tax" setting.


4) Select your "Default Tax Category" [ this is the category that will be used for all of your products unless you specify a tax category specifically within an individual product's settings. The tax category selected within the individual product setting will override the "Default Tax Category" setting. ].

Note: Tax categories selected for individual Products will override the default category.


5) Select all of the Nexus Addresses/states where you want to collect sales taxes.

  • Click Add Nexus Address.
  • From the dropdown, choose County/Countries.
    • If you select United States, you’ll can choose from all 58 states.
    • For Canada, you’ll can choose from 13 provinces/territories.
    • For other countries, selection is country-specific only.
  • Enter your Tax ID for each country or state. This ID will be considered during tax calculation at checkout if required by local regulations. (Optional)
  • Click Add to save the nexus address.

Important Note: Deleting a country with individually added states (e.g., Canada) also removes its states. Countries must be deleted one at a time.

6) Click "Add" at the bottom.


7) You're done! You've enabled the automatic sales tax calculations.


You can select specific product tax categories for individual products while creating or editing products under Payments > Products. The tax category selected within the individual product setting will override the "Default Tax Category" setting.

Confirm Taxes at Checkout


Once automatic taxes and nexus addresses are configured taxes are applied automatically based on the customer’s address.

Here is an example of what the taxes will look like when a customer is checking out through the online store:

  • The applied tax amount appears as a distinct line item on the customer’s payment summary.
  • If a business Tax ID is configured for a region, it is considered in the tax calculation as per local tax rules.

Managing Nexus Addresses


Nexus addresses define where your business has a tax obligation. Properly managing these ensures taxes are applied only where required.


  • Add or remove countries/states as your business expands or contracts.
  • Deleting a country with separately added states (like Canada) will also remove those states from the Nexus Addresses list.
  • Regularly review and update nexus addresses to stay compliant with changing regulations.

Frequently Asked Questions


Q: Do I need to configure taxes for every country where I sell products?

Yes, you must add each country (or state, for US/Canada) where you have a tax obligation to ensure taxes are calculated correctly.


Q: Can I edit my business’s Tax ID after adding it to a nexus address?

Yes, Tax IDs can be edited at any time from the Nexus Addresses list.


Q: Is this feature compatible with all payment providers in FG Funnels?

Yes, International Automatic Taxes works across all payment providers supported by FG Funnels.


Q: Can I bulk-add countries and states for tax calculation?

Yes, you can select and add multiple countries or states at once using the bulk-add feature.


Q: How does tax calculation work at checkout?

Taxes are calculated automatically based on:


  • The customer’s billing or shipping address.
  • The configured nexus locations.
  • The product’s assigned tax code.
  • Any associated Tax ID, if applicable.

The tax amount appears as a separate line item in the final order summary.



Q: Which checkout types support automatic taxes?

Automatic tax calculation works across Funnels, Payment Links, Invoices & Estimates, Ecommerce Store checkouts.


Q: Where can I find the list of supported countries for automatic tax calculation?

The list is available inside the + Add Nexus Address menu when configuring automatic taxes. Select from the dropdown or search by country/state name.


Q: Does automatic tax calculation work in India?

No, automatic tax calculation is currently not supported in India. Taxes for transactions in India must be handled manually by configuring tax rates within your product and checkout settings, or by including tax amounts directly in your product pricing.


We recommend consulting a tax professional to ensure compliance with India’s GST and tax invoicing regulations.


Q: Where can I check which Tax Code to use for different tax categories?

You can view the tax category and code mapping here: View Tax Codes List. Use this list while assigning Product Tax Codes in your product settings to ensure accurate tax calculation during checkout and invoicing.


Q: Where is Automatic tax available within FG Funnels?

You can view and add automatic taxes on the following checkouts - Invoices & Estimates, Payment Links, Funnels and Ecommerce Stores.