Taxation Settings per Store
InkSoft will not provide tax advice for liability reasons. Please consult a tax professional to be certain you are operating under your jurisdictional tax rules and regulations.
In this section, you can determine Global and Store level taxation settings. InkSoft uses a third party tax service which provides tax percentages for each State, City and Zip code.
Store Taxation Details (Optional)
- Click Settings
- Click Shopping Cart Settings
- Click Taxation
- Federal Tax ID Number: You can enter the Federal Tax ID number you use for filing with the IRS.
Note: This is optional, not required. This will be entered within your "Order Tax Detail" Report so that you can send over needed information to your accountant.
- Non-Taxable: Checking this option will not charge ANY tax throughout your entire store. (This is a global setting and will be applied to all stores within your license.)
Note: Check only if you are 100% certain that your organization is not liable for sales tax in any jurisdiction. We advise that you consult a tax professional on all matters regarding taxation.
- Click Save
Customer Residency (Optional)
InkSoft will automatically use the shipping address for taxation purposes. If the billing and shipping addresses do not match, you can prompt the user to click on which state they are a resident of.
You can also have them enter in their Driver's License number for your records.
- State Selection Dropdown
- Ask For DL - Ask for Drivers license
- Require DL - Require Drivers License
- Plus Sign (+) - Add another state - You can add as many states as you would like
- Click Save
Taxable Countries (Optional)
Configure tax settings for Countries per individual store
- Country Selection Dropdown
- Name (VAT, GST, Etc) - Tax representative name
Note: The Goods and Services Tax (GST) is a value-added tax levied on most goods and services sold for domestic consumption. In effect, GST provides revenue for the government. Also referred to as Value-Added Tax (VAT) in some countries. (To clarify please seek representation from a tax professional)
- Tax Percentage - % to be added per country
- Tax Shipping - Check to Tax on Shipping
- Tax All - Check to tax on everything
- Plus Sign (+) - Add another country taxation per store
- Click Save
Taxable States (Optional)
- Zip Code - This is based on your stores location
Note: This is automatically entered for you upon store creation. It will pull the zip code based on the address you enter per your stores location.
- City - You can type in the city name that is associated to the zip code. This resolves the issue of having multiple cities under one zip code.
Example: If Tempe, Mesa and Phoenix were under 85281. And each city has a different Tax Rate - Tempe 8%, Mesa 7.5% and Phoenix 8.5%. By entering Zip Code 85281 with City Tempe, it will calculate the taxation of 8% that is associated with Tempe.
You have 3 Tax By options:
- Base Zip Code - Apply taxation based on your stores zip code
- Destination - Apply taxation based on your customers zip code
- Not Sure (Recommended) - Allows our third party taxation take into affect and tax correctly every time.
Note: Based on your states requirements for taxation, it will tell you whether you will be taxing by "Destination or Base Zip Code unless overridden" underneath your Tax By choices.
- No Tax On Shipping - You can exempt taxation on shipping. By checking the box, tax will NOT be applied to shipping for any in state transactions.
- Override Tax Percentage - You can override your taxation percentage per your store.
- GL Code - A General Ledger contains all the accounts for recording transactions relating to a company's assets, liabilities, owners' equity, revenue, and expenses. The general ledger is the backbone of any accounting system which holds financial and non-financial data for an organization
Note: This will only show if you are integrated with Shopworx. You also NEED to have this entered if you are integrating with Shopworx.
- Trash Can - You can delete your stores taxation configuration.
Note: If you are working with an organization that is tax-free, you can either delete the line item for that store so the whole store will be tax exempt OR you can make all products in that store tax exempt under Products> Manage Products.
- Click Save
You have the ability to override an entire stores taxation settings to make it tax free!
- Click the checkbox next to the store you would like to be tax exempt
Please consult a tax professional to ensure you are operating under applicable tax laws.
Harmonized System Codes & Tax Rules
Please click here to view the training guide for setting up HS Codes.