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Automattic / woocommerce-services

WooCommerce Services is a feature plugin that integrates hosted services into WooCommerce (3.0+), and currently includes automated tax rates and the ability to purchase and print USPS shipping labels.
GNU General Public License v2.0
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Manual tax for California added to Standard rates when entering a CA shipping address #2519

Closed gabrielbonifacio closed 2 years ago

gabrielbonifacio commented 2 years ago

Describe the bug:

If you have a tax nexus outside California, but enter a California shipping address on the Checkout, the following will happen:

Even if you delete that tax, it will be re-added as soon as you enter a California address on the Checkout again.

Steps to reproduce:

  1. Make sure your store's base address is on any State besides California. I tested with this base address: 38612 Kalifornsky Beach Rd, Bradenton, FL 34211.
  2. Make sure automated taxes are enabled at WooCommerce > Tax > Tax options.
  3. Go to WooCommerce > Tax > Standard rates, and delete any existing rates for CA.
  4. Add a product to the cart and do one of the following:
    • On the Cart page, simulate shipping using a California address. I used this for testing: San Francisco, CA 94110.
    • On the Checkout page, enter an address from California.
  5. Either of the above will make a tax be added.
  6. Go back to WooCommerce > Tax > Standard rates, and you'll see a tax rate has been added there.

https://d.pr/i/7Y5aJr Link to image: https://d.pr/i/7Y5aJr

https://d.pr/i/WwcpfL Link to image: https://d.pr/i/WwcpfL

https://d.pr/i/0U2TZU Link to image: https://d.pr/i/0U2TZU

Expected behavior:

No tax should be charged, since the tax nexus is outside California and there are no manual rates for that state.

Actual behavior:

Taxes are added anyway, and also a manual rate are added on WooCommerce's Tax Settings (Standard rates section).

Isolating the problem:

Additional details:

Right now I'm aware of two different instances of this issue:

WordPress Environment

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darcie commented 2 years ago

4723579-zen

I can't find any changes to California taxes for 2022 that would cause the change, and https://developers.taxjar.com/demo/ doesn't show taxes calculating for shipping to California when the store location is elsewhere.

Markup 2022-01-26 at 12 56 00

I can reproduce this in a test store:

  1. I set the store base location to Michigan.
  2. With logging on for WooCommerce Shipping & Tax, the log shows "has_nexus":true for a California shipping address.
  3. Changing the address on checkout to Florida logged "has_nexus":false.
Markup 2022-01-26 at 13 00 08
namiokuzono commented 2 years ago

4723901-zen 33535695-hc

AashikP commented 2 years ago

Another report in 4716415-zen

thracefulton commented 2 years ago

Another instance in 31708028-hc. Tax nexus is in FL. The issue began on Monday Jan 24th for them.

chrism245 commented 2 years ago

Another report 22127360-hc, they didn't have problems before Jan 25th.

nicdwilson commented 2 years ago

4727547-zen. WA based site now collecting taxes for WA and CA. Replicated on a clean staging environment.

AashikP commented 2 years ago

More reports in

4727272-zen 4727288-zen

tijosh commented 2 years ago

33911642-hc

sebastiank112 commented 2 years ago

I'm noticing same issue with AZ > CA orders.

shaunkuschel commented 2 years ago

Another report in 4726410-zen (WA-based site, taxes collected for CA orders)

frosso commented 2 years ago

It looks like the issue was caused by some API misconfiguration, which is now resovled. While we investigate this further to prevent additional cases, we recommend going into the WooCommerce settings and manually removing misconfigured values for "US-CA".

This can be done by going into WooCommerce > Settings > Tax > Standard tax rates. On that page, you can select all the "US CA" tax lines, click "Remove selected rows" and then "save".

2022-01-28 13 13 57

In the meantime, we will keep investigating to find a solution that can avoid this manual step.

gabrielbonifacio commented 2 years ago

This can be done by going into WooCommerce > Settings > Tax > Standard tax rates. On that page, you can select all the "US CA" tax lines, click "Remove selected

@frosso In my tests, deleting the rate didn’t work. It would be re-added as soon I as entered a California address again on the Checkout or Cart.

As I workaround, I tried to manually add a tax of 0% for California. That rate got replaced by the plugin as well.

jcolombo12350 commented 2 years ago

Yes, as soon as someone checks out with a California zipcode, taxes are applied on the checkout page, and a new CA tax rate is added in the 'Standard Tax Rate' page. This scenario keeps repeating itself.

darcie commented 2 years ago

@frosso In my tests, deleting the rate didn’t work. It would be re-added as soon I as entered a California address again on the Checkout or Cart.

As I workaround, I tried to manually add a tax of 0% for California. That rate got replaced by the plugin as well.

@gabrielbonifacio That was the case before the adjustment to our API. With the change made today, that should not happen any longer. Are you still seeing that occur?

thracefulton commented 2 years ago

In order to prevent future occurrences, please do the following:

  1. Navigate to WooCommerce > Settings > Tax and click Standard Rates
  2. Select any rows with State Code of CA (hold the Shift key to select more than one at a time)
  3. Click the Remove selected row(s) button at the bottom of the rate table.

Now that we’ve removed the source of those tax rates being added and applied, any new orders from CA customers should not have tax applied.

jcolombo12350 commented 2 years ago

Everything is now working correctly. Thanks for your help. It was very much appreciated...

frosso commented 2 years ago

I'm closing this for now.

The API configuration has been adjusted. We added a store notice to alert merchants that might have been impacted by the issue. The notice links to the documentation. We updated the documentation with steps the merchants can follow on how to mitigate the issue: https://woocommerce.com/document/woocommerce-shipping-and-tax/woocommerce-tax/#jan-2022-ca-notice We added a tool in WooCommerce > Status > Tools > Delete California tax rates to help merchants that have been impacted by the issue.

namiokuzono commented 2 years ago

I am able to confirm this issue has come back. Re-opening the issue. I was looking into an issue reported in 5352039-zen and testing on my staging. Then found out that the CA taxes have been automatically added to Standard Rate tax as described in the original issue reporting.

I have then installed new install of staging site using Jurrasic Ninja, and used COD as payment gateway. The issue is present. Here is the example screenshot of Standard Tax rate that is automatically added after order is placed: https://d.pr/i/fPGZg6

I further tested and confirmed that this time CA tax is not added when the Nexus is not CA. (Nexus is CO, and order is placed with CA address = No Standard Rates added)

I have also tested different Nexus (CO) and when CO address is entered for an order, I was able to confirm that CO Standard Tax rate is also entered.

So this is not affecting just CA this time.

namiokuzono commented 2 years ago

I am going to close this case now since this was re-opened due to my misunderstanding of a case I was working on. Sorry about this!