Automatic Tax Lookup Rate allows you to charge your client the current tax rate in their area. Using this Tax Mode prevents you from having to monitor what the tax rate is and update it accordingly. This also allows the tax amount to vary based on the billing location. The system will automatically check the tax rate for the selected state and charge the client the correct amount. Please note, this is only available for customers located in the United States. International customers can find out more about our our custom tax rates option here.
Setting up an automatic tax lookup rate
Click the steps below for a detailed walk-through:
Step 1: Click the Business tab
Step 2: Click the Sales Tax tab
Step 3: Click 'Add a State Tax'
Step 4: Choose Tax State
Step 5: Choose 'Automatic Tax Lookup' Tax Mode
Step 6: Edit Products, if needed
Step 7: Place a test order
Step 1: Click the Business tab at the top of the page.
Step 2: Click the Sales Tax tab on the left-hand side of the page.
Step 3: Click the 'Add a State Tax' button to create a sales tax rate.
Step 4: In the Tax State drop-down, choose the state that you would like to create this new Sales Tax rate for.
Step 5: In the Tax Mode drop-down, choose the Automatic Tax Lookup option. This will allow you to charge the client the most current tax rate for the state without having to manually track and update the amount.
Step 6: In the Taxable Overrides column, click "Edit Products". When creating/editing products, you can choose whether it is taxable or not. When creating a State Tax, the system will use the product default on whether to charge tax or not. However, you can also choose whether to charge tax/not charge tax on a per-product basis within this window. This is helpful if you have products that are available in multiple states but you only need to charge tax in specific states.
- The green checkmark will override the product default to charge tax.
- The red X will override the product default to not charge tax.
- Leaving the selector without either chosen, the product's default taxable status will be used.
Step 7: You can now place a test order to see what your client will see in regards to Sales Tax. Your client will see the Sales Tax rate in the Payment Information section when placing their order. Note: if the client changes their billing address during the order, the tax rate will automatically update (if needed). If you would rather not ask for the client billing address during an order and use the property address instead, click here for steps to enable that.
Click the help articles below for additional help on setting up and using the Sales Tax feature:
Setting up a Flat Sales Tax Rate
Setting up Custom Tax Rates
Sales Tax Collection Report
Do Not Ask For Client Billing Address - Sales Tax Lookup
For any additional questions, our Support team is ready to help you!