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Manage Taxes

Overview


In the United States, taxation of online sales is typically handled as follows:
  • Orders submitted by customers that reside in the same state where the company managing the online store is located are taxed
  • Orders submitted by out-of-state customers are not taxed (this includes international customers)


Tax Rate Calculation

Beginning in Feb., 2020, ProductCart no longer directly supports the use of tax data tables for sales tax calculation. Due to changes in the tax data products offered by our previous data vendor, we have opted instead to use a new, centralized sales tax rate database to completely replace the tax table functionality.

Use of the new tax database requires a small customization to your ProductCart site, which our staff can perform, and a subscription to the tax database. Subscription cost is $30 / month and includes tax rates for all states, territories and/or provinces in the U.S., Canada, Australia and New Zealand.

Once the customization has been installed, selecting the tax rates for your store is a straightforward process. In your store's control panel, navigate to 

Settings > Manage Taxes

With the customization installed, the View/Edit Tax Settings page will now confirm that your subscription to the tax database is active. Click on Edit Settings to continue.

On the tax configuration page, select all states/provinces where you need to collect sales tax. Once you have completed selections on this page, click Save Settings to complete the process.


ProductCart also supports country-based taxation for international stores. Canadian stores can now display federal and local taxes separately (other stores in other countries that require this, can do so as well, of course). Independently of the tax settings configured using the Tax Option module, you can set a product or service as tax-exempt when adding or modifying a product.

The tax calculation features provided by ProductCart are designed to help you calculate sale taxes. However, the calculation performed by the software may or may not exactly match the tax laws that you need to comply with. You should consult your local tax authority to determine the tax laws that you need to adhere to.