Applies to: Orders API
Learn how to apply taxes to an order using the Orders API.
Building on the example order created in Order Price Adjustments, learn how to apply taxes to the example order.
The final calculations for the order involve taxes. There are two types of taxes and they're processed by the Orders API in this order:
- Item-level taxes - Calculated and applied to one or more individual items.
- Order-level taxes - Calculated for the entire order and then distributed proportionally to each item as apportioned taxes.
In the following example, the state of California has approved the following taxes, which must now be collected:
- A 5% fair trade tax, applicable to any handmade goods.
- An 8.5% sales tax on every order.
The following CalculateOrder request defines these two taxes (FAIR-TRADE-5-PCT and STATE-SALES-8.5-PCT) and applies each one appropriately:
Calculate order
If your application supports service charges, see Order Service Charges to learn how to apply service charges to this example order. To learn how discounts are applied to this example order, see Order Discounts.