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

POS Channels

For POS Channels, you can configure the criteria according to which the taxes applied while creating the order. This can be done from the Tax Source section.

  • The tax rules apply on the basis of the source and destination of the order. For Standard POS orders, the source and destination both are the Facility Address (Country and State are considered here).

  • You can preconfigure fixed Tax Classes for Products and Services. This will be particularly useful if taxes are uniform across your products OR if you want to account for County specific taxes that Tax Rules cannot handle.

Taxes on the invoice for a POS Order will always be the ones referred to during order creation. Once created, 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 the 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 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 creation screen.

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

Online Channels

For online channels, you can configure the source of taxes from Channel Configuration.

Tax Source for online channels

  • You can either use taxes displayed in the transactions for online orders

  • OR use the 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 to the best of our abilities, 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 ordered 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 reverse 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.
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