The Sales Tax screen is used to
set up various sales tax methods used by the system.
According to current law, sales tax is automatically applied based on order shipping destination and
according to the tax authority jurisdiction.
For instance if the merchant is located an area subject to a sales tax
jurisdiction and an order is
shipped to an area under the same sales tax jurisdiction, the tax is applied.
ezStore123/MerchantComplete also supports local taxes within a state or province. This is
accomplished by supplying a list of postal codes for which the tax applies. Note
that in this case also, the tax will be applied according to the 'Ship-To'
postal code of an order. Such tax methods support complex sales tax laws such as
those in force in the state of New York and some US states.
The 'Basic' and 'Advanced' tax calculations methods are reviewed in detail
below.
Basic Sales Tax Calculation:
Merchant A resides in Los Angeles, LA County, state of California where the tax rate
is 8.25%.
Merchant B resides in Irvine, Orange County, state of California where the tax rate
is 7.75%.
Orders shipped to California addresses
will be taxed according to the tax rate in force at the merchant location
(respectively 8.25% and 7.75%).
Orders shipped outside of California will
not be taxed.
Sales tax is not applied outside of the tax authority jurisdiction
(state/province and/or country).
Sales tax methods are applied cumulatively by country and state/province (example: Canada
GST/PST) if both tax methods are supplied.
You will need to set up two tax methods in this case, one for the state or province and one for the country.
Local taxes can be either added to the state/province if the state province
oversees the tax rates or be implemented according to postal codes as
illustrated below.
The basic sales tax mechanism defined in the above paragraphs complies with the sales
tax laws of most US states, Canada, European countries as well as most other
countries. For advanced tax methods, see 'Advanced Features' section and 'Postal
Codes' section. More complex sales tax calculations are also available
(see 'Advanced Sales Tax Calculation').
Advanced Sales Tax Calculation:
Merchant A resides in New York City, NY, where the tax rate is
8.00% and sales tax applies at shipping location.
Merchant B resides in Buffalo, NY, where the tax rate is 5.75% and sales
tax applies at shipping location.
- Customers from NYC, NY purchasing from merchant A will pay 8.00% sales tax.
- Customers from Buffalo, NY purchasing from merchant A will pay 5.75% sales
tax.
- Customers from NYC, NY purchasing from merchant B will pay 8.00% sales tax.
- Customers from Buffalo, NY purchasing from merchant B will pay 5.75% sales
tax.
- Customers not living in the state of NY and from merchant A or B will pay no
sales tax.
Support for advanced sales tax methods through determination of sales
tax based upon the 'ship-to' postal code. Since postal codes are defined at the
city level and therefore identify uniquely the local taxing authority, this
concept covers virtually every sales tax scenario.
| Field Name | Description | ||||||||||
| Tax Authority |
Select the tax authority from the list (may be a country or a state/province). If the desired value is not in the list, add it using the Business->Country or Business->State/Province screens. |
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| Tax Name | Name of the tax applied (example: CA Sales/Use Tax). This is an information-only field. | ||||||||||
| Apply to Customer Type | Platinum
(B2B) version only. Some customer types may have a different tax rate than retail or altogether be tax-exempt. Select the customer type you want to apply this tax method to. |
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| Tax Rate | Enter the tax rate (in percentage) to be applied to sales. Enter the value applicable to the merchant's location if the tax authority has different tax rates according to specific areas (example: CA counties). | ||||||||||
| Postal Codes | In most cases,
this field can be left blank, unless you are located in a state or country
requiring taxation at the local level (according to postal code). Enter the list of postal codes (US=ZIP codes) for which the tax applies. Values may be numeric or alphanumeric and must be separated by commas. The table below illustrates the various formats supported by the system.
Note that the ellipsis
(...) is provided only for illustration purposes and should not be used
when defining lists. |
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| Shipping Tax Rate | Enter the tax
rate for shipping & handling (if applicable) or leave value to default
of '0'. When applicable (in very rare cases), the tax on shipping is applied after the order confirmation and added to the order total tax amount. In such cases, the system displays a message to the customer before the order is processed. |
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| Apply Date | The date the tax becomes applicable. Note: 1/1/2000 means Jan 1st 2000 at 0:00:00. Tax information can be entered ahead of time and will automatically apply when scheduled. | ||||||||||
| Expiration Date | The date the tax ceases to be applicable. Note: 1/1/2000 means Jan 1st 2000 at 0:00:00. |
| Command Button | Action |
| Save | Save the changes and exit. |
| Cancel | Exit the screen without saving changes. |
Important information about apply/expiration dates: |
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