Setting Up Taxes in NRO

Purpose:
To explain how to setup Tax Rules, Zones, and Classes for taxable goods that tax the same. If you have product tax classes that tax differently (clothes tax differently than food, for example), please contact RHA Support for assistance.
Solution:

Setting Up Tax Rates

Note: It is only necessary to set up tax rates and zones for the states/zip codes for which you need to collect sales tax.
Tax rates are what determine the percentage amount of the cart total that should be taxed.
  1. Select Sales (horizontal top menu) / Tax / Manage Tax Zones and Rates .
  2. Click Add New Tax Rate .
  3. Tax Identifier will be a short description of the state or area you are setting the tax rate for. Examples : Alabama or WEB-AL..
  4. Select the Country the tax rate is listed in.
  5. Zip/Post is Range has a Yes or No option. If you select 'No' then you will be prompted to add the zip or postal code in the Zip/Post Code box. If you select 'Yes', you will be prompted to include a Range From and Range To zip/Post is Range . This can be helpful to merchants in States where the state has multiple tax rates. IF 'Yes' is selected, you will need to include all rates for all zip code ranges.
  6. Add your Rate Percentage . This is the tax rate for the area specified.
  7. Save your changes.
  8. To assist with the creation of tax rates, see Uploading Your Own Tax Rates

Setting Up Tax Rules

  1. Select Sales (horizontal top menu) / Tax / Manage Tax Rules .
  2. Click Add New Tax Rule.
  3. In the Name field, provide a meaningful name that will allow you to easily identify it's purpose.
  4. Select the Customer Tax Class for this rule. For most merchants, this is simply the Retail Customer customer tax class.
  5. Choose the Product Tax Class that applies. All taxable items upload to NRO and are assigned a tax class of Taxable Goods. If you have commodities that tax differently, you'll need a custom item mapping file to make the additional product tax classes move over to NRO. Contact RHA Support for more details.
  6. In the Tax Rate field, choose the state(s) to which the rule applies. (Multiple states can be chosen by using the keyboard shortcut of Ctrl + click.)
  7. Assign a Priority to your tax rule. (This indicates in which order the rules are applied and is recommended to be listed in increments of 10.)
  8. Sort Order is for the back end only and determines in what order rules are listed. (Recommended to be listed in increments of 10.)
  9. Save your changes.
  10. Repeat steps 1- 10 of this section for each state or province or territory for which you orders should calculate sales tax.

Setting Up Customer Tax Classes

Customer Tax Classes need to be set up to allow you to manage taxes for customer groups. Retail customers, for example will need to pay tax if purchasing on the web in an area where you are legally able to collect sales tax. Wholesale merchants may be tax exempt. By default, NRO has a single customer tax class already defined called Retail Customers and by default all NRO customer categories are uploaded to that Retail Customers tax class. If you need to create an additional customer tax class for tax exempt customers, follow the steps below to add the exempt tax class.

  1. Select Sales (horizontal top menu) / Tax / Customer Tax Classes .
  2. Click Add New .
  3. Type a Class Name, such as Wholesale Customer or Tax Exempt Customer.
  4. Save your changes.
  5. Repeat these step for any additional customer tax classes you will need for your store.
After the additional tax class has been defined, the customer groups that should be in this tax class need to be configured.
  1. Select Customers (horizontal top menu) / Customer Groups.
  2. Click on the Group name of the customer category (these publish automatically from Counterpoint to NRO) that should be taxed differently than Retail Customers.
  3. In the Tax Class drop menu, select the appropriate tax class.
  4. Save your changes.
  5. Repeat these steps, if needed.

Setting Up Product Tax Classes

Taxable items publish over to NRO and are auto-assigned to a product tax class of Taxable Goods. If the item's taxable flag is unchecked, the IA will not assign the items to any product tax class. If you use Avatax in your store, you will need a custom file to let your non-taxable items automatically assign to a tax class of EXEMPT. There is no charge for this file. Please contact RHA Support to request the file. If you need additional product tax classes to move over from Counterpoint to NRO, please contact Support and we'll provide your options.

Managing Tax Settings for the Store

Some tax settings need to be set up for the store and how they apply to your orders and customers.
  1. Select System (horizontal top menu) / Configuration .
  2. Go to the Sales section, and then click on the Tax tab.
  3. Expand the Tax Classes panel. The Tax Class for Shipping setting determines if you charge tax on shipping. Leave this setting set to the default of, "Shipping (not used by AvaTax)."
  4. Expand the Calculation Settings panel. This panel determines how you apply tax to products.
    Tax Calculation Based On - Location the tax should be based on.
    Catalog Prices - If pirces in your store should reflect the tax on that product or not.
    Shipping Prices - Whether shipping charges will be shown with taxes included. ( If applicable)
    Apply Customer Tax - When customer taxes should be applied to an order.
    Apply Discount On Prices - If taxes should be applied to discounts.
    Apply Tax On - If taxes are applied to discounted prices or the original price.
  5. Expand Default Tax Destination Calculation .
    Select the Default Country for your store.
    Default State can be set to display a default tax calculation in the shopping cart. Whatever the customer enters into the cart summary or checkout will override this default. We recommend leaving this as *.
    Default Postal Code can be set to display a default tax calculation in the shopping cart. Whatever the customer enters into cart summary or checkout will override this default. We recommend leaving this as *.
  6. Expand the Shopping Cart Display Settings.
    Display Prices - whether or not to display prices including tax in the cart.
    Display Subtotal - Determines if the subtotal will show pricing with or without tax.
    Include Tax In Grand Total - Whether or not to display tax on the grand total.
    Display Full Tax Summary - Determines if you want a full detail of taxes and how they apply to the order.
    Display Zero Tax Subtotal - whether or not you want to show a zero tax for orders with no tax applied.
  7. Expand the Orders, Invoices, Creditmemos Display Settings. The same options are available in this section as are in the Shopping Cart Display Settings, but they apply to Orders, Invoices, and Credit Memos.
Fixed product taxes will not apply to all merchants. These are fixed tax rates that apply to only certain items.

8. Open the Fixed Product Taxes panel
Enable FPT - Choose whether or not you want FTP to be on.
Display Prices In Product Lists - Whether or not to display FPT prices in product lists.
Display Prices On Product View Page - Choose whether product view pages will reflect the FPT prices.
Display Prices In Sales Modules - Will sales modules include FPT prices?
Display Prices In Emails - Will FPT prices display in emails sent from store?
Apply Discounts To FPT - Are FPT's discountable?
Apply Tax To FPT - Are FPT taxable?
Include FPT In Subtotal - Should the FPT be included in subtotals?
Once you everything configured, Save your changes.


Article ID: 131
Created On: Wed, May 30, 2012 at 1:24 PM
Last Updated On: Fri, Jan 8, 2016 at 10:13 AM

Online URL: http://help.ncrretailonline.com/article/setting-up-taxes-in-nro.html