Store Level > Settings > Tax Settings

Use this screen to apply tax settings to each store individually. Company Stores is integrated with TaxJar.

Video: Setting Up Taxes

If your organization will be building stores that accept payment, you will need to ensure that you are collecting the appropriate sales tax.

TaxJar

Commercio Company Stores and Commercio PopUps are integrated with TaxJar to accurately calculate those taxes, based on the product category, state or province, county, and district.

How is tax determined and based on what information?

Commercio transmits Nexus information to TaxJar, as configured in Settings, along with shipping and product details. TaxJar utilizes this data to provide accurate tax calculations.

How is TaxJar calculating tax when Nexus is set up?

TaxJar calculates the tax rate using the provided information based on tax obligations. It is crucial for users to maintain current Nexus information, both physical and economic. TaxJar considers whether the state is origin or destination based. Customers are responsible for monitoring their sales and the taxes they have collected to meet their obligations.

How can I identify how much tax was collected for what area/nexus?

You will be able to see how much tax was collected in their orders report. 

Tax Settings in Company Stores

Select the state(s) or province(s) for which you are responsible to calculate, collect, remit, and refund state sales tax on sales sold through your Store.

Note that if you have an economic nexus*, you will enter the country and state for physical nexus locations. Adding full address information provides accurate rate calculations.

1	This field lists the current active states and/or provinces for the Store.
2	Click here to add a location. Only Country and State/Province are required fields; however, including a specific address guarantees a more precise tax rate.
3	Click here to edit or delete an entry.

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Set Tax Overrides for Each State

If you would like to override the tax amount collected for specific states, enter those sales tax percentages here.

 Speak with a tax professional in your area before making decisions about tax overrides.

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Tax Shipping and Handling

Select whether to override tax collection on shipping and handling charges. 

The default setting is to collect taxes on Shipping and Handling charges. Speak with a tax professional in your area before making decisions about tax overrides.

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Tax Overrides Per Category

Some states offer discounted sales tax rates for certain categories of products, like apparel. Override the default sales tax rates here.

 Speak with a tax professional in your area before making decisions about tax overrides.

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State Sales Tax Nexus in Company Stores

A sales tax nexus represents the relationship between a seller and a state that obligates the seller to register, then collect and remit sales tax within that state. Specific business activities, such as maintaining a physical presence or achieving a sales threshold, can create a nexus with the state. Economic Nexus laws typically mandate that an out-of-state seller collect and remit sales tax after reaching a predetermined level of sales transactions or gross receipts within the state, without necessitating a physical presence.

State Sales Tax Nexus in PopUps

In order to calculate accurate sales tax, you will need to select the applicable states or provinces in the Account Settings (PSA access only). 

To add taxable locations, go to Account > Account Settings and click Add Taxable Location on the Global Merchant Account Settings and Global Sales Tax Setting field.

Adding full address information ensures accurate rate calculations. Then click Add to include the location. Repeat the process for additional locations.

Updated June 19, 2024 14:29