If a tax is not calculated correctly for a new shipping location, what is the likely issue?

When tax is not calculated correctly for a new shipping location, the most likely issue is that the tax jurisdiction is missing. Tax jurisdictions are essential in determining the correct tax rates that apply to any given location. These jurisdictions define the boundaries within which specific tax rates are applied, often dictated by local government bodies.

If the jurisdiction relevant to the new shipping location is absent from the configuration, the system would not know what tax rates to apply, resulting in incorrect tax calculations. Tax jurisdictions can be defined at various levels, including city, county, or state, and if any of these are missing for the location in question, this would directly lead to taxation errors.

While other configuration aspects such as tax locale, region, and country are indeed important, they serve as broader categories under which jurisdictions fall. If the specific jurisdiction is not defined or linked correctly to a location, it overrides the functional effectiveness of those other configurations. Therefore, having the correct tax jurisdiction in place is crucial for accurate tax calculation.