Tax rate

Understanding Tax Options

Video 4:22 (start at 2:29)

Contact your State Department of Revenue to determine requirements for sales tax in your state.

Most states have a destination-based sales tax, which means that the sale is thought to take place in the jurisdiction where the product is ultimately used (where it’s shipped to or picked up from), which would mean that it is not necessary to charge sales tax for those products that are shipped out-state. A few states have an origin-based sales tax, which means the sale is considered to take place at the location where the sale is completed (the seller’s business location), in which case you would collect sales taxes on all of your retail sales.

If charging tax is required, one of two methods is used:

Fixed tax rate provider - use this method if you can charge the same rate for everyone that purchases a particular item (product variant)

Tax by Country & State & Zip - – use this method if you need to charge tax based on the purchasers address

The default tax solution is Fixed Tax Rate provider. But your items default to having no tax category assigned, which means tax will not be charged by default. If you wish to charge tax, ensure that you have selected the proper Tax Provider and then follow the Fixed tax rate provider or Tax by Country & State & Zip instructions.

If sales tax should be charged on shipping, this must be enabled separately as well.

Note: Taxes must be applied to each product individually no matter which method you select. This is done by assigning a Tax Category to each taxable product. If a fixed rate tax provider is used, then the tax rate applied is the rate specified for that category. If the Tax by Country & State & Zip provider is used, then the assigned tax category specifies which tax rate “rules” apply when determining the tax.

To select a different Tax Provider

1.	Click eCommerce in the left-hand menu.

2.	Click Configuration in the upper drop-down menu.

3.	Click Tax.

4.	Click Tax Providers.

5.	Click Mark as primary provider in the row of the desired tax provider.

6.	The blue checkmark will appear in the Is primary provider column.