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How to properly set up taxes?


Spyridon

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In US, I believe it's typical for online businesses to tax only when a customer is in the same state as them, and no taxes on sales outside of state, correct?

 

I'm wondering how I could set this up with Prestashop to work this way?

 

Thanks.

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actually, I think one only needs to levy tax in-state, when they have a brick and mortar store.  if e-business only and not actual store front then my understanding is no-tax is applied. 

 

Okay well, we do actually have some local sales, not as many as online by far but still have some.

 

Any idea on how to set that up?

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brick and mortar = physical store

 

here is good info (in case you have not seen it already)

http://doc.prestashop.com/display/PS16/Taxes

 

"The current default rule throughout the United States is that you must collect sales tax on Internet sales to customers in those states where your business has a “physical presence.” The physical-presence rule is based on a 1992 United States Supreme Court decisionQuill Corp. v. North Dakota, that addressed the obligations of mail-order businesses to collect sales tax on out-of-state sales; the decision has been extended to include online retailers. Generally speaking, a physical presence means such things as

  • having a warehouse in the state
  • having a store in the state
  • having an office in the state, or
  • having a sales representative in the state."

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We fall under that rule I pasted above.

 

With that said, what you linked me mentions how to set it for specific countries, not specific for a state.

 

So back to my original question again... Does anyone know how to set up prices to be free to all states but one?

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  • 3 weeks later...
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So how would one go about applying taxes if if you have locations in multiple states?  Right now prestashop only allows you to assign 1 tax rule per product.  Tax rules for Florida are not the same as New  York or Texas.  So I can I have all of the products use tax rules based on the state that the item is being shipped to?  I cannot charge New York sales tax if the item is being shipping to Texas, need to charge Texas sales tax yet the cart only allows me to assign one rule per item which seems counter productive.

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