Announcement:Materials and articles for ProductCart 5 can be found at our brand new support center.

Create an account to edit articles | See Formatting Syntax for Wiki syntax | We look forward to your contribution!

Differences

This shows you the differences between two versions of the page.

Link to this comparison view

productcart:tax_data_file [2008/10/13 10:43]
earlyimpact
productcart:tax_data_file [2013/07/12 14:44] (current)
Line 1: Line 1:
-===== Using a Tax Data File =====+====== Using a Tax Data File =====
  
 This section applies mostly to US merchants, although you can use this feature of ProductCart outside of the US too if you can apply tax rates based on the customer’s postal code. This section applies mostly to US merchants, although you can use this feature of ProductCart outside of the US too if you can apply tax rates based on the customer’s postal code.
  
-==== Overview ====+===== Overview ​=====
  
 It is important to understand when you are required to collect sales tax in your Internet store, and for which states. Most online sellers collect tax only in the state(s) where they have a "​nexus",​ or physical presence. The definition of nexus varies from state to state, but can include employees, agents, telecommuters,​ premises, personal property, or even web servers. ​ __Check with your CPA or the state directly to determine if your company has a nexus in that state.__ It is important to understand when you are required to collect sales tax in your Internet store, and for which states. Most online sellers collect tax only in the state(s) where they have a "​nexus",​ or physical presence. The definition of nexus varies from state to state, but can include employees, agents, telecommuters,​ premises, personal property, or even web servers. ​ __Check with your CPA or the state directly to determine if your company has a nexus in that state.__
  
-==== Accounting for multiple local sales tax levels ====+===== Accounting for multiple local sales tax levels ​=====
  
 Sales tax can be at local levels beyond just the state rate.  These local rates can include the county, city, special purpose district (SPD), and metropolitan transit area (MTA). ​ Keeping track of these rates and rate changes is essential to ensure that you are charging the correct sales tax rate for your online transactions. Sales tax can be at local levels beyond just the state rate.  These local rates can include the county, city, special purpose district (SPD), and metropolitan transit area (MTA). ​ Keeping track of these rates and rate changes is essential to ensure that you are charging the correct sales tax rate for your online transactions.
  
-Early Impact ​recently partnered with Tax Data Systems to allow US-based users of ProductCart to quickly, easily and accurately calculate sales tax on orders placed on their store.+ProductCart ​recently partnered with Tax Data Systems to allow US-based users of ProductCart to quickly, easily and accurately calculate sales tax on orders placed on their store.
  
 If would like to use a tax data file to calculate taxes in ProductCart,​ but elect not to use Tax Data Systems’ services, you can manually create a tax data file. Please refer to this [[:​developers:​taxdatafiles|technical article]] for details on the file format that you will need to adhere to. If would like to use a tax data file to calculate taxes in ProductCart,​ but elect not to use Tax Data Systems’ services, you can manually create a tax data file. Please refer to this [[:​developers:​taxdatafiles|technical article]] for details on the file format that you will need to adhere to.
Line 17: Line 18:
 Tax Data Systems provides inexpensive subscription services to complete and updated data files that contain all the information that is needed to properly calculate sales taxes. The company sends regular updates to its customers to keep them up-to-date with the latest tax changes. Tax Data Systems provides inexpensive subscription services to complete and updated data files that contain all the information that is needed to properly calculate sales taxes. The company sends regular updates to its customers to keep them up-to-date with the latest tax changes.
  
-==== The benefits of using Tax Data Systems'​ data files with ProductCart ====+===== The benefits of using Tax Data Systems'​ data files with ProductCart ​=====
  
 ProductCart v2.7 and above contain a sophisticated tax module that takes advantage of Tax Data Systems’ data files to allow your store to effectively perform the following tax-related tasks: ProductCart v2.7 and above contain a sophisticated tax module that takes advantage of Tax Data Systems’ data files to allow your store to effectively perform the following tax-related tasks:
Line 28: Line 29:
 For more information,​ please see: http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp For more information,​ please see: http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp
  
-==== Do you need a tax data file? ====+===== Do you need a tax data file? =====
  
 If your company has a physical presence in one or more US states, and if any of those states are listed in the table shown below, then local tax rates are used, and the answer to the question of whether you should use a tax data file is **“yes”**. If your state is not listed, then it means that either there is no sales tax in your state, or a uniform tax rate is applied across the state. If your company has a physical presence in one or more US states, and if any of those states are listed in the table shown below, then local tax rates are used, and the answer to the question of whether you should use a tax data file is **“yes”**. If your state is not listed, then it means that either there is no sales tax in your state, or a uniform tax rate is applied across the state.
 __Contact your local tax authority for more information on how sales taxes should be calculated in your state (and in all other states in which your company has a physical presence).__ Below is a list of the states that collect local taxes. __Contact your local tax authority for more information on how sales taxes should be calculated in your state (and in all other states in which your company has a physical presence).__ Below is a list of the states that collect local taxes.
- 
    
   *   ​Alabama   *   ​Alabama
Line 74: Line 74:
  
  
-==== Obtaining a tax data file from Tax Data Systems ====+===== Obtaining a tax data file from Tax Data Systems ​=====
  
 Once you have determined in which states your company has a physical presence and which of those states require the company to pay sales taxes, contact [[http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp|Tax Data Systems]] to purchase a subscription service to tax data files for those states. In most cases, you will probably need just one tax data file for the state in which your company resides. Once you have determined in which states your company has a physical presence and which of those states require the company to pay sales taxes, contact [[http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp|Tax Data Systems]] to purchase a subscription service to tax data files for those states. In most cases, you will probably need just one tax data file for the state in which your company resides.
Line 82: Line 82:
 Once you have obtained the data file from [[http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp|Tax Data Systems]], you can return to ProductCart and finish setting up the tax settings. If you purchased more than one file, carefully review the next section. Once you have obtained the data file from [[http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp|Tax Data Systems]], you can return to ProductCart and finish setting up the tax settings. If you purchased more than one file, carefully review the next section.
  
-==== Combining multiple data files ====+===== Combining multiple data files =====
  
 You can only use one data file at a time in ProductCart. This means that if you purchase two or more data files (two or more states) from [[http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp|Tax Data Systems]] (e.g. your company has an office in California and one in New York), you will need to combine them into one and upload the combined file to ProductCart. You can only use one data file at a time in ProductCart. This means that if you purchase two or more data files (two or more states) from [[http://​www.earlyimpact.com/​productcart/​support/​updates/​taxlink.asp|Tax Data Systems]] (e.g. your company has an office in California and one in New York), you will need to combine them into one and upload the combined file to ProductCart.
Line 97: Line 97:
   * Proceed to the next section, which contains information on how to upload your tax data file to ProductCart.   * Proceed to the next section, which contains information on how to upload your tax data file to ProductCart.
    
-==== Configuring ProductCarts Tax Module ====+===== Configuring ProductCart's Tax Module ​=====
  
   - Log into your ProductCart //Control Panel// and select //Store Management Tools > Tax Options > View/Edit Tax Options//. From the screen that is shown to you, select the option to use a tax file.   - Log into your ProductCart //Control Panel// and select //Store Management Tools > Tax Options > View/Edit Tax Options//. From the screen that is shown to you, select the option to use a tax file.
Line 105: Line 105:
   - Enter the name of the file that you just uploaded to the store in the corresponding input field. For example, the naming convention of the tax files is the state abbreviation underscore complete.csv (e.g. “CA_complete.csv”). Make sure to include the “.csv” extension when you enter the file name in the corresponding field. If you enter a name that does not match that of the file that you uploaded to the store, you will receive an error message during checkout.   - Enter the name of the file that you just uploaded to the store in the corresponding input field. For example, the naming convention of the tax files is the state abbreviation underscore complete.csv (e.g. “CA_complete.csv”). Make sure to include the “.csv” extension when you enter the file name in the corresponding field. If you enter a name that does not match that of the file that you uploaded to the store, you will receive an error message during checkout.
   - Select whether wholesale customers should be taxed or not on your store.   - Select whether wholesale customers should be taxed or not on your store.
-  - Enter one or more default states and specify a tax rate for all of them.  +  ​-- Enter one or more "​fallback" ​tax rates for the states in which you pay taxes.  
-  .. The default ​sales tax rate is the sales tax rate that will be used if a match for the customers shipping address is not found in your tax rate file (for example, ​the customer types an incorrect zip code or a new zip code is added by the State and your file has not been updated to reflect this). +  .. The fallback ​sales tax rate is the rate that will be used if a match for the customer's shipping address is not found in your tax rate file (e.g. the customer types an incorrect zip code or a new zip code is added by the State and your file has not been updated to reflect this). 
-  .. If your company resides in California and you only have a physical presence in California, then the tax data file that you uploaded to your store will likely only contain tax rates for California, and your default ​state is only California. If you collect sales taxes for more than one state, enter them as default ​states. +  .. For example, if your company resides in California and you only have a physical presence in California, then the tax data file that you uploaded to your store will likely only contain tax rates for California, and your fallback tax rate state will be only California. If you collect sales taxes for more than one state, enter them as fallback ​states. 
-  - Place an order in your storefront to ensure that taxes are properly calculated. ProductCart will look at the ZIP code of the customer’s shipping address match it to a tax rate in the data file that you have uploaded. If there is no match, and if the state entered for the shipping address is not one of the default ​states listed in the tax settings, ProductCart will assume that the order does not need to be taxed. If there is more than one match, ProductCart will prompt the user to select the city/county in which they live in.+  - Place an order in your storefront to ensure that taxes are properly calculated. ProductCart will look at the ZIP code of the customer’s shipping address match it to a tax rate in the data file that you have uploaded. If there is no match, and if the state entered for the shipping address is not one of the fallback ​states listed in the tax settings, ProductCart will assume that the order does not need to be taxed. If there is more than one match, ProductCart will prompt the user to select the city/county in which they live in.
  
 <​note>​ <​note>​
-As long as the file is properly formatted, ProductCart will automatically determine whether shipping charges and/or handling fees should be part of the taxable total.+As long as the file is properly formatted, ProductCart will automatically determine whether shipping charges and/or handling fees should be part of the taxable total. The file contains two columns which control this: TAX_SHIPPING_ALONE and TAX_SHIPPING_AND_HANDLING_TOGETHER. Enter either N or Y into these columns to control these options.
 </​note>​ </​note>​
  
Line 122: Line 122:
    
  
-Once you have setup the tax calculation to use a database, ProductCart shows you a summary of such settings every time you click on //View/Edit Tax Options// from the //Tax Options// menu, as demonstrated in the screenshot above. From that screen you can either keep the tax settings 'as is', edit them (e.g. change the default ​tax rate), or switch to alternative ways to compute taxes, which are described in the next sections.+Once you have setup the tax calculation to use a database, ProductCart shows you a summary of such settings every time you click on //View/Edit Tax Options// from the //Tax Options// menu, as demonstrated in the screenshot above. From that screen you can either keep the tax settings 'as is', edit them (e.g. change the fallback ​tax rate), or switch to alternative ways to compute taxes, which are described in the next sections.
  
  
-==== Troubleshooting problems related to using a tax file ====+===== Troubleshooting problems related to using a tax file =====
  
 If you are receiving an error when placing a test order, and the error occurs during the checkout process, after the shipping selection page and before the order verification page are shown, and/or the error details shown by your browser include the file name tax.asp, please check on the following before contacting us for technical support: ​ If you are receiving an error when placing a test order, and the error occurs during the checkout process, after the shipping selection page and before the order verification page are shown, and/or the error details shown by your browser include the file name tax.asp, please check on the following before contacting us for technical support: ​

QR Code
QR Code Using a Tax Data File (generated for current page)