The calculation of sales tax on orders submitted on the Buyer interface can be configured on the Admin interface by creating manual tax rules or by utilizing the tax web service Four51 offers through integration with Zip-Tax.
The sales tax configuration pages can be accessed on the left navigation bar after clicking the Admin top navigation tab.
Using manual tax rules provides more flexibility and control in deciding when to charge tax as rules can be set by country, state, zip code or zip code range.
With tax rates changing frequently, using the Zip-Tax web service reduces the maintenance by managing all of the tax tables and rates. Both are good solutions, but one can be better than the other based on your needs.
The following sales tax configuration options are available:
Manual tax rates can be configured by country, state, or ZIP code, using the specific rate to be charged.
Zip-Tax integration can be enabled for selected buyer companies. After the applicable nexus states are configured, the integration retrieves the tax rate in real time when the shipping address is located within one of those states. The tax rate is determined based on the city, state, and ZIP code combination, and is applied to the line items to calculate the tax amount.
A built-in TaxCloud integration provides more granular options for applying tax to orders. A TaxCloud account must first be obtained directly from TaxCloud. Contact TaxCloud for information about account setup and available services. After the account is configured, provide the TaxCloud credentials to enable the integration for the account.
Product-level tax rates can also be configured by creating a specific Static Spec containing the Taxability Information Code (TIC). The TIC is then included in the tax information sent to TaxCloud.
For more information, refer to TaxCloud Sales Tax Calculation Service.
The CalculateTax web service supports integration with any tax rate provider. During checkout, an XML transaction is sent to a configured middleware endpoint. The middleware communicates with the tax provider and returns the calculated tax amount, which is then applied to the order. Contact Coverdale to discuss the scope of this solution, as Coverdale has experience implementing this type of integration, including integrations with Avalara.
For more information, refer to Four51 Technology Services Partners.
Reference Materials: None
Related Articles: Navigate to Sales Tax Setup, Sales Tax Company Overview, New Tax Rule Setup
Labels: Tax, Sales Tax