Taxes & Fees - Taxes List - Edit / Add Region
Setup your tax regions by city/county/state/province/country. Individual taxes are then setup in the defined regions.
When setting up your account and visiting the sales tax page for the first time, there will be no tax tables set up.
To get started click on ADD REGION in the top right.
When adding tax regions, you will want to create specific regions for each COUNTRY / STATE or PROVINCE / COUNTY / CITY for which you have tax collection obligations, also referred to as tax nexus.
For example, a store located in Pensacola, Escambia county, Florida, USA would need to set the following regions in their account according to Florida sales tax collection requirements:
- United States of America, Flordida (state), Escambia (county)
- United States of America, Florida (state)
This allows the store to collect the State and County tax for all pick up in store orders as well as orders shipped within the boundaries of Escambia county. Any other order shipped within Florida will only collect the state rate as retailers aren't required (in Florida) to collect for cities and counties they don't operate in. Note that there is no region that digs down to the city level, since there is no Pensacola city sales tax.
Once the regions are setup, you can add one (or many) taxes to the region using the ADD TAX button. Adding and editing taxes is covered here.
Each country / province and state has very different collection requirements and for US retailers, it's also possible to have Nexus outside of your home state. For retailers that have VAT included in the sale price, you can toggle this in the general settings.
Retailers with Nexus in multiple states, or in very complicated sales tax states such as California, Colorado, Louisiana, Texas or Tennesse should consider integrated tax software such as TaxJar or Avalara. (Contact sales@dakis.com for more information about integrated tax partners)