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Managing Taxes in Sale Orders

Taxes are applied on orders and subsequently invoices based on certain configurations on each channel as well as Tax Classes and Rules setup on the Settings Section.

POS Channels

For POS Channels, from the Tax Source section, you can configure whether the taxes applied, while creating the order, will be picked from

  • Either the tax rules that will apply basis source and destination of the order. For Standard POS orders, the source and destination are the Facility Address Itself (Country and State are considered here)
  • OR You can preconfigure fixed Tax Classes for Products and Services. This will be particularly useful if taxes do not change much in your store OR if you want to account for County specific taxes which Tax Rules cannot handle.

Taxes on the invoice for a POS Order will always be what was referred to during order creation. Post creation, these invoices can be edited for taxes.

B2B and Custom Channels

In B2B and Custom Channels, taxes on orders can be set to an approximation basis tax rules that are applied to the default assignment facility on the channel.

Example: If the default assignment facility was in California and Your customer selected is in New Jersey, then the tax Rule that works for California -> New Jersey source-destination pair will be loaded in the order creation screen.

You can choose to modify these from the order create screen.

Invoices for these B2B/Custom orders will be carry taxes based on rules that apply to the actual final facility which fulfils the items of the orders – depending on how the order was split.

Post creation, the invoices can be edited for taxes

Online Channels

In Online channels, you can configure what is the source of taxes for items from the channel configuration.

Tax Source for online channels
  • Either use taxes that come in the transactions for online orders
  • OR use tax rules setup in Primaseller

If you choose to use Taxes from the online channel, we will attempt to

  • Search for the same Tax class on a best effort basis looking into the tax code of existing classes. The format used will be TaxNAME@rate. Example: VAT@18 or GST@7. However if the Tax name is missing, we will use “Tax”
  • If not found, a Tax Class is created
  • This Tax class will be set on the order item as well as the subsequent Invoice item created from it.

Some channels like Amazon or BigCommerce do not give us a % rate on the transactions. For these, we back calculate and estimate a %. This can lead to decimal point fractions like 12.0001% or 11.999% when the rate should have been 12%. In such cases, you will need to manually modify the Tax Class Name and rates from Taxation Configuration to correct them for future transactions.

Existing transactions carrying incorrect rates will need to be corrected on each transaction.

Updated on August 11, 2020

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