Destination Based Taxes

Modified on Mon, 20 Jun, 2022 at 2:45 PM

Overview

Cloud Retailer allows you to charge tax based on the ship to zip code of a customers' transaction.

Depending on your state and local laws, you may need to charge tax on where the product will be used rather than where it was purchased. This is commonly used when a customer purchases a product from a corporate location but will use the product in another location.

Procedure

Setting up Destination Based Taxes

To use destination-based taxes, it first must be enabled.

Navigate to Admin > Global Entity Setting > POS.
Make sure "Enable destination based taxes" is checked and click [Save].

Now we need to define the Sales Tax and Sales Tax Jurisdictions.

Navigate to Admin > Sales Taxes.
Create New Sales Tax.
Set the "Code" to be the destination zip code.
Set the description to be the county name.

Now assign a Jurisdiction by clicking Add existing or Create new jurisdiction.
If you are creating a new jurisdiction, fill in the Description and Code with a meaningful name.
Set the tax rate.

Click [Save].
Now that a Jurisdiction has been created, you can now click Add existing jurisdiction.
Once the jurisdiction(s) are added to your Sales Tax, finally click [Save].

Once finished, you should have something that looks like this:

Using Destination-Based Taxes

A customer must be assigned to the transaction which has a primary zip to address.

Search for and add a customer to the transaction.
Once a customer is attached, click on their name in the upper left corner.
Press the [Shipping] or F7 button.
Select or create a new shipping address for this transaction.
Note: The zip code must be identical to the zip code created in the previous step.
Once selected, set the address as [Primary] if not set previously.
Click [Close].

If the destination zip code matches any sales tax codes define in the previous step, then those sales tax jurisdictions will apply to the active transaction. If there is no match then the default sales tax rate defined on the product properties will be used.

Here is a video highlighting the above procedure: