Which type of tax calculation in Adobe Commerce is based on the merchant's warehouse location or store address?

Question

Options

• AShipping Origin-based tax calculation
• BBilling Address-based tax calculation
• CCustomer-based tax calculation
• DProduct-based tax calculation

• A
  92% (23)
• B
  4% (1)
• D
  4% (1)

Explanation

Shipping Origin-based tax calculation uses the merchant's warehouse or store address as the tax jurisdiction anchor - meaning taxes are determined by where goods ship from, not where the customer is located. Option B (Billing Address) bases taxes on where the customer receives their invoice, which reflects the buyer's location. Option C (Customer-based) is not a standard Adobe Commerce tax calculation type - customer location can influence tax but it isn't named this way in the platform. Option D (Product-based) refers to tax classes assigned to products (e.g., taxable vs. exempt), which determines whether a product is taxed, not where the tax rate comes from.

Memory tip: Think "Origin = Origin of the shipment = the store's address." If you remember that "origin" means the starting point of the package (the merchant's side), you'll never confuse it with buyer-side calculations like billing address.

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