Merchants that plan to do sales in multiple jurisdictions across the United States will realize how difficult this task can be. There are more than 12,500 sales tax jurisdictions in the United States. Sales tax can be challenging to manage on your own, this is why having tax automation is critical. TaxCloud will calculates sales tax in real time for every state, county, city, and special jurisdiction in the US. The plugin makes uses of the entire TaxCloud API. Before TaxCloud, keeping up with every possible sales tax rate and product-type and use-based exemption rule in every state required your business to either hire a small army of tax attorneys and software developers, or license expensive enterprise-class sales tax software.
If you have a physical store and only plan to sell locally, you would most likely not need this plugin, however the people that needs this plugin may be doing sales across the United States and they may also have established Nexus in these states which can complicate taxes. Nexus is a presence in a particular state. If a taxpayer has presence ( e.g physical location, warehouse, salesmen ) in a particular state, the taxpayer must pay and collect sales taxes in that state. If you planned to do sales in every state, you would have to register and get a tax license from each state and you would have to file a report with them up to 4 times a year. 50 states all with their own unique system, Filing up to 4 times per year per state would waste too much of your time.
During checkout, when users enter their shipping address or billing address, we will try and validate these addresses. If validation fails, we offer a suggested address. Addresses must be validated in order for TaxCloud to properly calculate taxes.
TaxCloud determines the applicable sales tax rate based on multiple factors such as product / category / state and local jurisdiction.
For each new order on your store, we will create a record in TaxCloud, this record serves as the orders tax record and contains meta data of the order. The records created in TaxCloud will be used to calculate how much sales tax you owe each month to each state.
TaxCloud will auto file to all member states. TaxCloud Member States include the Commonwealth of Pennsylvania as well as the 25 Streamlined Sales Tax states: Arkansas, Georgia, Indiana, Iowa, Kansas, Michigan , Nebraska, Nevada, New Jersey, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Washington, West Virginia, Wisconsin and Wyoming
Filing to non member states you can do manually by downloading their formatted spreadsheet and you can go to that particular state and register/upload the file and pay quarterly or bi annually based on state requirements.
You can create multiple accounts and give different access roles. For example, you could create a role for an auditor or your accountant and they would have restricted access to your TaxCloud account
In the authorities view, there is no such thing as "non taxable". Non taxable is really tax exempt. Certain customers can obtain a tax exempt certificate and TaxCloud will take that into consideration when calculating taxes for that particular customer.
Taxes are calculated different depending on where the product was shipped from. If you have multiple warehouses, this will be sent along with each order to TaxCloud. You can use the standard nopCommerce warehouse feature and we will send that data over automatically to TaxCloud.
TICS are tax codes associated with product categories, we use a simple hashtag system to specify your TIC on the product category. If your TIC was 444, you would add #444 to your tax category name.
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How does it work?
We have altered the checkout process to validate addresses with the TaxCloud API and all orders are synchronized with TaxCloud. We also are logging each API request to taxcloud as this is data is required in the unlikely chance of an audit. The plugin supports multi store feature.
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