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Order Processing

Order Processing

How Tax Calculation Works

The Zamp Tax plugin processes orders through the following steps:

  1. When an order is initiated, the plugin checks if tax calculations are enabled

  2. Confirms the destination address is valid

  3. Customer group tax exemption status is evaluated

  4. Product tax codes are collected for each line item

Real-time Tax Computation

Tax rates are calculated in real-time during checkout:

  1. Cart contents are sent to Zamp API including:

    • Line items with quantities and amounts

    • Product tax codes

    • Shipping address

    • Customer exemption status

  2. Zamp API returns:

    • Itemized tax calculations

    • Applied tax rates

    • Total tax amount

Note: If tax calculation fails, the system will default to 0% tax rate.

Order Transaction Flow

The transaction process follows this sequence:

  1. Pre-transaction validation:

    • Verify API connectivity

    • Check address is in nexus state

    • Validate product tax codes

  2. Transaction processing:

    • Calculate tax rates

    • Apply tax to line items

    • Generate tax breakdown

  3. Post-transaction actions:

    • Log transaction details

    • Store tax calculations

    • Queue for reporting

Tax Rate Application

Tax rates are applied according to these rules:

  • Line item tax calculation:

    • Individual tax rates per product

    • Based on product tax code

    • Considers shipping location

  • Shipping tax calculation:

    • Separate shipping tax rates

    • Based on delivery address

    • Follows state regulations

  • Exemption handling:

    • Zero rate for exempt customers

    • Partial exemptions where applicable

    • Documentation requirements

Important: Tax calculations require valid product tax codes and customer address information to function correctly.

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