Taxes
The Tax section allows tax rates to be configured.
There are 2 ways to set up taxes: Local or 3rd Party Tax Provider.
What We'll Cover In This Article
Overview
Here is a brief walkthrough of how taxes work in our system.
3rd Party Tax Providers
The following section will show if you do not have a 3rd Party Tax Provider chosen.
Select one of these 3rd Party Tax Providers and enable them. Once enabled, the Local Tax section will be disabled and the chosen 3rd Party Tax Provider's rates will be used.
For more information on Avalara and Tax Cloud, Click here.
Below is a video that walks you through where to put the information that your third party tax provider sends you.
Once they have sent you the information for your account, simply click on the corresponding logo and enter the info. Don't forget to click save!
Local Tax Table (built-in)
7cart is equipped with a simple method of creating a tax table per Zip Code, State and/or Country. These are manually created by you and do not rely on any external services to work.
- Click the "Add New Tax" button to add taxes.
- You may also click the edit or delete for existing taxes.
- Save Changes applies to the Main Tax Options
- If checked charges tax on Gift wrapping ang Non-shipping items respectively
Main Tax Options
- Charge Tax On Gift Wrapping - If Gift Wrapping is enabled, taxes will be charged on the Gift Wrapping amount.
- Charge Tax On Non-Shipping Items - Charges taxes on non-shipping items (e.g. downloadable items).
Add/Edit Tax Rule
- Country - Sets the Country the tax will apply to.
- State/Region - Sets the State/Region the tax will apply to. You may use the “All States/Regions” option to apply tax to all areas in the “Country”.
- Postal/Zip Code - Applies the tax to the specific Postal/Zip Code. Leave blank to apply the tax to all Postal/Zip Codes within the State/Region. NOTE: If you leave the Zip Code blank and later on decide to add on a new tax (for example a municipal tax) to a few select Zip Codes within the state you had initially selected, the two values will be added at checkout.
- Rate - Sets the rate for the tax.
- Apply to Items of Type - Tax Classes may be configured under Configuration > Order Settings > Tax Classes. Tax Classes may be applied to products within the store. Use this option to define what Tax Classes apply for this Tax.
- Apply to Shipping - Tax will also be applied to the shipping rate of the order.
Importing Taxes
If you have many tax rates that need to be imported by zip code, you can import the taxes by using this tool.
Import Format
- ZIP Code (Zone Improvement Plan) code - a system of 5-digit codes that identifies the individual post office or metropolitan area delivery station associated with an address.
- Sales Tax Rate - The combined state and local taxes associated with an area’s ZIP code.
- State - A two letter abbreviation for the state.
- Shipping Taxable - “1” mean shipping is taxable and “0” means no.
Your spreadsheet must match this format exactly for the importer to recognize the file.
Tax Classes
Products on the store have the option of being assigned to a Tax Class. Tax Classes allow you to charge a specific amount of tax for each product in the store in addition to any normal sales tax.
In order to apply a specific tax rate to a Tax Class, the store admin must create a new tax under Configuration > Order Settings > Taxes.
Select the country, state/region, county and postal/zip code the tax applies to.
Next, set the rate you’d like applied for this Tax Class.
In the “Apply to Items of Type” drop down list, select the Tax Class you’d like this tax applied to.
Supporting Documentation
For a additional description/explanation of the functionality and features found in this section of the admin, please visit the following link(s):