Tax Calculations From Sold To

Good morning all,

It’s my understanding that taxes are calculated from the Ship To address on the Sales Order. The problem for my company is that we sometimes ship direct to an installer, which would mess the taxes up. Is there a way that we could switch the taxes to be calculated off of the Sold To address? It would seem to make the most sense to have the taxes come from that address anyway. Thanks for your time and help!


Tax is charged based on the place the customer takes possession of the product (point-of-sale), so tax should be calculated off the ship-to address. We frequently ship to installation sites for our customers and always charge tax based off the ship-to location.

Thanks for the reply Charlie. The issue for our company is that a lot of times we ship directly to an installer who will deliver the product to the site for installation. So taxing won’t be accurate when calculating from a different address other than the point-of-sale, which is why we were looking to switch to the Sold-To address.