Understand tax processing and in-store pick up

When you configure tax processor integrations, you must provide Ship from Warehouse Location properties that specify an address from which items sold on your store are shipped.

The tax processor uses this information when calculating taxes.

In previous releases, Commerce set the Ship from Warehouse Location property per order. To support in-store pick up, this property is now set at the line item level, that is, per shipping group:

• When all items in an order are shipped from a warehouse to the shopper, the Ship from Warehouse Location is the warehouse you specified when you configured your tax processor integration.
• When a shopper picks up all items in the order from a store, the Ship from Warehouse Location is the store address.
• When an order includes a mix of items being shipped and picked up, or items that are being picked up at multiple locations, each shipping group is assigned its own Ship from Warehouse Location.

Commerce automatically sets the ship-to address for in-store pick up shipping groups as the pick-up location. You do not have to configure your tax processor integrations to do this. Commerce uses the address that you specified when you created the location. See Create physical locations for more information.

To learn about configuring the built-in Avalara and Vertex tax processor integrations, see Configure Ship from Warehouse Locations. To learn about configuring an integration with an external tax processor, see Configure Tax Processors.