fix(react): use pickup location address for tax calculation on billing updates

.changeset/seven-signs-ask.md

@@ -0,0 +1,5 @@
+---
+"@godaddy/react": major
+---
+
+modify use-update-orders.ts to detect pickup orders and always send the pickup location address for tax calculation, ensuring consistent tax rates based on where the customer picks up their order.

packages/react/src/components/checkout/order/use-update-order.test.ts

@@ -0,0 +1,148 @@
+import { describe, expect, it } from 'vitest';
+
+/**
+ * Helper function to get the tax destination address based on delivery method.
+ * This is the core logic used in useUpdateOrder to determine which address
+ * to send for tax calculation.
+ *
+ * For pickup orders: Always use the pickup location address
+ * For shipping orders: Let backend use the saved shipping address (undefined)
+ */
+function getTaxDestinationAddress(
+  deliveryMethod: string | undefined,
+  pickupLocationId: string | undefined,
+  locations: Array<{ id: string; address: Record<string, unknown> }> | undefined
+): Record<string, unknown> | undefined {
+  const isPickup = deliveryMethod === 'PICKUP';
+
+  if (isPickup) {
+    const pickupLocationAddress = locations?.find(
+      loc => loc.id === pickupLocationId
+    )?.address;
+    return pickupLocationAddress;
+  }
+
+  // For shipping, return undefined to let backend use saved shipping address
+  return undefined;
+}
+
+describe('useUpdateOrder - Tax calculation address logic', () => {
+  const mockLocations = [
+    {
+      id: 'location-1',
+      address: {
+        addressLine1: '599 Stegall Dr',
+        adminArea1: 'GA',
+        adminArea2: 'Jasper',
+        countryCode: 'US',
+        postalCode: '30143',
+      },
+    },
+    {
+      id: 'location-2',
+      address: {
+        addressLine1: '123 Main St',
+        adminArea1: 'NY',
+        adminArea2: 'New York',
+        countryCode: 'US',
+        postalCode: '10001',
+      },
+    },
+  ];
+
+  describe('Pickup orders', () => {
+    it('should return pickup location address for PICKUP delivery method', () => {
+      const result = getTaxDestinationAddress(
+        'PICKUP',
+        'location-1',
+        mockLocations
+      );
+
+      expect(result).toEqual({
+        addressLine1: '599 Stegall Dr',
+        adminArea1: 'GA',
+        adminArea2: 'Jasper',
+        countryCode: 'US',
+        postalCode: '30143',
+      });
+    });
+
+    it('should return correct location when multiple locations exist', () => {
+      const result = getTaxDestinationAddress(
+        'PICKUP',
+        'location-2',
+        mockLocations
+      );
+
+      expect(result).toEqual({
+        addressLine1: '123 Main St',
+        adminArea1: 'NY',
+        adminArea2: 'New York',
+        countryCode: 'US',
+        postalCode: '10001',
+      });
+    });
+
+    it('should return undefined if pickup location not found', () => {
+      const result = getTaxDestinationAddress(
+        'PICKUP',
+        'non-existent-location',
+        mockLocations
+      );
+
+      expect(result).toBeUndefined();
+    });
+
+    it('should return undefined if locations array is empty', () => {
+      const result = getTaxDestinationAddress('PICKUP', 'location-1', []);
+
+      expect(result).toBeUndefined();
+    });
+
+    it('should return undefined if locations is undefined', () => {
+      const result = getTaxDestinationAddress(
+        'PICKUP',
+        'location-1',
+        undefined
+      );
+
+      expect(result).toBeUndefined();
+    });
+  });
+
+  describe('Shipping orders', () => {
+    it('should return undefined for SHIP delivery method', () => {
+      const result = getTaxDestinationAddress(
+        'SHIP',
+        'location-1',
+        mockLocations
+      );
+
+      expect(result).toBeUndefined();
+    });
+
+    it('should return undefined when delivery method is undefined', () => {
+      const result = getTaxDestinationAddress(
+        undefined,
+        'location-1',
+        mockLocations
+      );
+
+      expect(result).toBeUndefined();
+    });
+  });
+
+  describe('Edge cases', () => {
+    it('should handle pickupLocationId being undefined for pickup', () => {
+      const result = getTaxDestinationAddress('PICKUP', undefined, mockLocations);
+
+      expect(result).toBeUndefined();
+    });
+
+    it('should handle empty string pickupLocationId for pickup', () => {
+      const result = getTaxDestinationAddress('PICKUP', '', mockLocations);
+
+      expect(result).toBeUndefined();
+    });
+  });
+});

packages/react/src/components/checkout/order/use-update-order.ts

@@ -1,5 +1,7 @@
 import { useMutation, useQueryClient } from '@tanstack/react-query';
+import { useFormContext } from 'react-hook-form';
 import { useCheckoutContext } from '@/components/checkout/checkout';
+import { DeliveryMethods } from '@/components/checkout/delivery/delivery-method';
 import { useUpdateTaxes } from '@/components/checkout/order/use-update-taxes';
 import { useGoDaddyContext } from '@/godaddy-provider';
 import { updateDraftOrder } from '@/lib/godaddy/godaddy';
@@ -10,6 +12,7 @@ export function useUpdateOrder() {
   const { apiHost } = useGoDaddyContext();
   const updateTaxes = useUpdateTaxes();
   const queryClient = useQueryClient();
+  const form = useFormContext();
 
   return useMutation({
     mutationKey: ['update-draft-order'],
@@ -32,7 +35,22 @@ export function useUpdateOrder() {
         (!input.shipping?.address && input.billing?.address)
       ) {
         if (session?.enableTaxCollection) {
-          updateTaxes.mutate(undefined);
+          // For pickup orders, always use the pickup location address for tax calculation
+          const deliveryMethod = form?.getValues?.('deliveryMethod');
+          const isPickup = deliveryMethod === DeliveryMethods.PICKUP;
+
+          if (isPickup) {
+            const pickupLocationId = form?.getValues?.('pickupLocationId');
+            const pickupLocationAddress = session?.locations?.find(
+              loc => loc.id === pickupLocationId
+            )?.address;
+
+            // Always send pickup location address for pickup orders
+            updateTaxes.mutate(pickupLocationAddress);
+          } else {
+            // For shipping, let backend use the saved shipping address
+            updateTaxes.mutate(undefined);
+          }
         } else {
           queryClient.invalidateQueries({
             queryKey: ['draft-order', session.id],