Author Topic: Sales Tax of US states  (Read 6028 times)

Offline pawanesh

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Sales Tax of US states
« on: April 08, 2014, 09:29:31 AM »
There is a general need of a Sales Tax extension in Abantecart.

Missing a sales tax extension like Avalara in Abantecart.

Facing lot of problems in implementing sales tax rates of all states of USA in Abantecart.  >:(

Sales tax rates are different for different zip code areas within a state. How to get right sales tax rates for all zip codes of a state ? >:( >:(

Is it possible to use Ava Tax of Avalara.com as sales tax extension in Abantecart ?




 
« Last Edit: April 08, 2014, 01:45:37 PM by pawanesh »

gordontaylor

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Re: Sales Tax of US states
« Reply #1 on: April 08, 2014, 02:04:53 PM »
system>localizations ... Then edit each country and area.

Offline pawanesh

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Re: Sales Tax of US states
« Reply #2 on: April 08, 2014, 02:17:54 PM »
It is most simple answer received.

Please visit following link then answer.

tax.ny.gov/pdf/publications/sales/pub718.pdf"

tax.ny.gov/press/rel/2012/clothingsalestax032812.htm"

« Last Edit: April 08, 2014, 02:29:57 PM by pawanesh »

gordontaylor

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Re: Sales Tax of US states
« Reply #3 on: April 08, 2014, 03:02:03 PM »
Yes, it's very complicated in NY, live there as well. Some clothing under a certain price has no tax. If a clothing product is under that amount, on the product edit page there is a place to select no tax.

Are you shipping from NY?

Offline abantecart

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Re: Sales Tax of US states
« Reply #4 on: April 08, 2014, 05:25:05 PM »
This is interesting special case. There is no zip or post codes association in zones or locations.  We can think of creating zip or post codes based locations. If this is done, tax can be set up for specific zipcodes.

What do you think?

As about avalara.
There is no AbanteCart integration to avalara as of yet.  If you like our teem to work on integration to avalara, please PM to me.

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Offline pawanesh

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Re: Sales Tax of US states
« Reply #5 on: April 09, 2014, 04:34:57 AM »
Yes, it can be a very good solution.

If zip code based location is created then Tax can be setup for specific zip code for a state.

 :) :)

gordontaylor

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Re: Sales Tax of US states
« Reply #6 on: April 09, 2014, 08:43:17 AM »
In NY, for example, there are 3 things to consider. The state tax is 4%, then each county can add up to another 2% and finally each city or village can add an additional 2%.

With that in mind, zip codes won't work as many cities and towns and villages have multiple zip codes. For instance, I live just out side the village of Walton, the store near me the tax is 6%, but if I cross the village line to buy something, the tax is 8%.

It's very, very complicated.

Offline abantecart

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Re: Sales Tax of US states
« Reply #7 on: April 09, 2014, 09:16:00 AM »
Thank you Gordon.

What I was thinking is having a list or range of zipcodes in the tax settings.
If you need to combine taxes it is possible currently.

It is complex, but creating tools can give others ability to just configure. This is a free option for users to configure, if they have time.

For others, who do not have time, possibly we can just consider integration to avalara. This is not easy development, though, and it will have to be non-free extension.

To start on first option, pawanesh, can you please provide some scenarios how you see taxes be set up?
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gordontaylor

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Re: Sales Tax of US states
« Reply #8 on: April 09, 2014, 09:25:02 AM »
What I have done in the past is this. According to laws, my company is registered and all activities occur within NY. I am required to collect tax for sales made within New York State. The sales tax division advised me to collect the maximum of 8% on all Internet sales.

Also, if your company has one or more locations in other states, you must collect taxes in those states as well. i.e. You have a warehouse in Kansas for west coast deliveries, you would be required to collect tax on sales in Kansas as well.

I just collect the 8% and send it to the state every quarter. I've never lost a sale to someone within NYS because I may have charged a higher tax rate than their local area.

A simple solution would to be to just collect the maximum in each state you are required to collect the sales tax from and not worry about the variable rates within that state. All your bases are covered and the accountants like it!

Gordon

Offline abantecart

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Re: Sales Tax of US states
« Reply #9 on: April 09, 2014, 09:28:04 AM »
Thank you
A simple solution would to be to just collect the maximum in each state you are required to collect the sales tax from and not worry about the variable rates within that state. All your bases are covered and the accountants like it!
I love simple solutions  ;)

Do you still think we need to add zip/post codes to tax or location?
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gordontaylor

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Re: Sales Tax of US states
« Reply #10 on: April 09, 2014, 09:36:19 AM »
Not at all, just the state will do. Some research is necessary in some states, for example, Tenn has an 8% cap on goods, but a 13.5% tax on motels!

That can be left to the store owner!

++++++++++++++++++++++++

Keep in mind that if you do not have any physical presence in a state, you DO NOT need to collect sales tax in that state.
« Last Edit: April 09, 2014, 09:37:53 AM by gordontaylor »

Offline abantecart

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Re: Sales Tax of US states
« Reply #11 on: April 09, 2014, 01:07:20 PM »
Thank you. Let's keep this thread open for now.
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Offline pawanesh

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Re: Sales Tax of US states
« Reply #12 on: April 09, 2014, 02:05:52 PM »
Thank you for keeping this thread open.

Still trying to understand Gordon's point of view. 

I am trying to get more information from tax Lawyer and other sources.

Mean while please follow links given below to get more information on this issue:

1. tax.ny.gov/pdf/publications/sales/pub750.pdf

 -  page 10 (Rules for out-of-state businesses)
 -  page 25 (Calculating and stating the sales tax)

2. blog.taxjar.com/online-sales-tax-new-york/

3. blog.taxjar.com/charging-sales-tax-rates/

4. taxjar.com/new-york-sales-tax/

« Last Edit: April 09, 2014, 02:07:23 PM by pawanesh »

gordontaylor

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Re: Sales Tax of US states
« Reply #13 on: April 09, 2014, 02:26:00 PM »
pawanesh,

Sir, where do you reside? do you live in the US?


gordontaylor

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Re: Sales Tax of US states
« Reply #14 on: April 10, 2014, 12:20:00 AM »
Hi Pawanesh,

Can you give me an idea of what you sell or the link to your website?

Tax in NY is simple, just charge a flat 8% on taxable goods and you'll be fine. The only state you need to charge that tax is sales within NY - Until they figure out a way to tax everything on the Internet!

Gordon

 

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