Taxing Differences from State to State

[weekscigar]

Hello,

 

I need to charge one tax rate for one state based only on product price and then charge a second tax rate for a second state based on product price + shipping rate.

 

Thus far I can only see where a Tax Rule can be added (or not) to a Shipping Carrier... which means both states' tax rates would apply to product price + shipping rate.

 

I am using PrestaShop 1.5.4.1.

 

Anyone have any thoughts?

 

Thank you!

[benjamin utterback]

Hi weekscigar, I think there is a way you could do this. You would need to create a new zone for the states that need Shipping Tax enabled. Then you make another Carrier with shipping tax that is only allowed in the newly created zone that includes the states that need shipping tax.

[weekscigar]

Hi Benjamin,

 

Yeah, that's what I was thinking and I think that's the correct route to pursue. I appreciate the response.

 

Thank you!

[weekscigar]

Benjamin,

 

I'm trying to implement the solution we noted above, but am running into an issue.

 

I created a new zone called "Tennessee". I then added the state of Tennessee to that zone. I then created a new carrier and applied the Tennessee zone to it.

 

Now when I try to check out using a Tennessee zip code, I get "No carriers available". I think this is because the country in which Tennessee resides (United States) is still set for the North America zone?

 

Any ideas?

 

Thanks!

[benjamin utterback]

Hi weekscigar, yes you are right, the same thing happened to me. Lets move it back to normal and I will suggest something else.

 

 

But first I want to understand something. A Carrier tax is usually only applied to same state that your business resides in, is that correct?

[weekscigar]

Yeah, I'm getting clarification on why we are having to charge sales tax in the second state (Virginia). The business resides in Tennessee, but also needs to apply tax against products only (not shipping) in Virginia.

 

So yes, the Carrier tax only needs to apply to Tennessee.

[benjamin utterback]

Hi weekscigar, what is the additional tax rate for Tennessee delivery?

[weekscigar]

Ok, so here are the complete tax rules:

• If customer live in Virginia, they need to be charged:
  
  • 5% on products
    
  • 0% on shipping
    

  [*]If customer lives in Tennessee, they need to be charged:

  • 9.25% on products
    
  • 9.25% on shipping
    

Is that what you are asking?

[Dh42]

Does your company have a nexus in Virginia?

[benjamin utterback]

Thank you. Let me see what I can do. Have you updated the Tax rates for TN and VA in Localization>Taxes?

[weekscigar]

I'm stil trying to get clarification on the nexus question.

 

Benjamin, yes, I have updated both Tennessee & Virginia tax rates to be 9.25% & 5% respectively.

[Dh42]

The hard and fast rule is if you have a business address in the state. You can have employees operating in the state without having a business address. Also if you are registered with them on the ta rolls too.

[weekscigar]

Dh42, I appreciate the info. I'm trying to get clarification from the owner of the business (which I am not).

 

Thank you!

[Dh42]

Your best bet is going to be to use Presto-changeo's localized shipping if you need to do this. It will let you set a carrier for each state and then in Prestashop you can assign it to be taxed or not. http://www.presto-changeo.com/en/shipping-modules/83-localized-shipping.html

[weekscigar]

Dh42, thanks for pointing out the module.

 

Benjamin, any ideas other than using this module?

[benjamin utterback]

Okay try this. Wowzers.

 

1) Localization>Tax Rules>Add new (Name it whatever you want, I called it "US Blanket")>Add a new Tax Rule>for US, VA, Combine, VA Tax, Save and Stay> Add another Tax Rule within US Blanket for US, TN, Combine, TN Tax, Save and stay

 

2) Shipping>Carriers>Select All carriers manually and set them to Tax, US-TN Rate (9.25%)

 

3) Catalog>Products>Edit>Prices>Tax rule>select "US Blanket" (for each product)

 

That should only charge product tax to ONLY the states listed in the Tax Rule "US Blanket" which are TN and VA. Additionally, the carrier tax rule of 9.25% will be combined to only orders that are shipped to TN, which you specified in the Carrier tax.

[weekscigar]

Ok, I will try this. I will let you know if it works for me.

 

Thank you!!

[benjamin utterback]

By the way, you should test it out on a few products first... I'm just saying because you need to edit the product tax rule manually as well. So if you have 1000 products I wouldn't want you to spend all that time changing the tax on the products if it does not work.

[weekscigar]

Benjamin, this appears to be working! Thank you!!!