Each product and shipping method you create in Commerce Cloud has a Tax Code property. Tax calculators use the value of the Tax Code property to determine the tax category for a product or shipping method. For example, if you process taxes with vertex O Series, the value of the Tax Code property is the code you assigned to a taxability category in Vertex O Series. Consult the documentation for your tax processor to learn how it lets you categorize products and services.

Tax Code is not a required property; that is, Commerce Cloud allows you to create and publish a product or shipping method without providing a tax code. However, you should assign a tax code to every product and shipping method you create. Otherwise, the tax calculations may return unexpected results, including a higher-than-anticipated tax amount.