Sales Tax Setup
Before you begin entering products into the database, you should define as much of your store’s tax information as possible. This will make it easier to complete the product data entry, as there will be no need to return to the products to assign tax values later.
Cartweaver 4 has two "tax systems" to choose from. One is the internal tax system the other choice it to off load the handling of sales tax calculation to a third party system. Cartweaver 4 supports AvaTax by Avalara. Which should you choose? The answer depends on the complexity of your tax system. The internal tax system in Cartweaver 4 is very robust and handles most sales tax requirements, including more complex Canadian sales tax and European VAT tax, so you should take time to fami8luize yourself with the system and see if it will meet your needs. There are however some Sates or regions that have sales tax laws or structures that are simply too complex for a affordable stand alone solution to support. For example a few US States, Washington State for example, have adopted charging ales taxes based on the location of the buyer not the seller, and have divided the Sate into "taw districts" that are not based on city, county or postal code, but on a separate distracting map. To be able to comply with such complex requirements the AvaTax system by Avalara is a good choice. AvaTax calculates the sales tax based on whatever criteria the state/province requires and passes this back to the cart to be added to the order total, then keeps a record of the transaction and prepares the necessary tax reports for you.
Setting up the internal tax system.
The recommended procedure for configuring your store’s tax information is to first define all of the appropriate Tax Regions, and then the Tax Groups. Once these two steps are complete you can begin configuring all of the Tax Rates for each Group and Region.
Note: How you configure taxes depends local laws and regulations. It is your responsibility to determine the configuration necessary to satisfy legal tax requirements. The following tax configuration related information is intended as an overview only. Additional help is provided on each page in the Cartweaver admin./p>
Defining Tax Regions
Tax Regions specify a geographical region for which the store is responsible for paying taxes. Tax Regions can be defined at the Country level, as well as the State or Province level. Each Tax Region can have its own Tax Rates for each defined Tax Group.
To add a new Tax Region, click on Shipping/Tax in the Cartweaver menu, and then click Tax Regions. Complete the form at the top of the page and click Add. The new Tax Region will display at the bottom of the page.
Defining Tax Groups
Tax Groups define a collection of products that are taxed at the same rate. Examples of Tax Groups might include "Books", "Electronics", and "Food Items". Each Tax Group uniquely defines a specific type of taxable product.
To add a new Tax Group, click on Shipping/Tax in the Cartweaver menu, and then click Tax Groups. Complete the form at the top of the page and click Add. The new Tax Group will display at the bottom of the page.
Defining Tax Rates
Tax Rates can be defined by going through either the Tax Groups or Tax Regions page in the Cartweaver admin area. Each Tax Group can have Tax Rates defined in any number of Tax Regions. This provides a large amount of flexibility in how the tax configuration is set up.
To define a Tax Rate, click on either the Tax Groups or Tax Regions link under the Shipping/Tax menu in the Cartweaver admin. Click on either the Tax Group or the Tax Region to be configured. When editing the Tax Group or Tax Region, add new Tax Rates by choosing the group or region to which the Tax Rate should be assigned.
After creating an Avalara AvaTax account, go to your Cartweaver admin and go to Store Settings > Tax Settings -
- Find the Tax Calculation Method field
- Set this field to AvaTax
- Click Save Changes
- The AvaTax following AvaTax fields will now be visible
- Avalara - AvaTax Account ID
- Avalara - AvaTax Access Key
- Avalara Tax URL
- Avalara Tax Default Item Code
- Avalara Tax Default Shipping Code
- This information will be provided by Avalara, check Avalara account documentation for more information.