Sales Tax Setup

BirdDog uses the following logic to calculate tax on an order: 

  1. Is the Order using a saved Ship To address and does the Order's Ship To Country/State|Province/City match the saved Ship To's Country/State|Province/City? If yes, use the tax code/schedule assigned to that Ship To address.
  2. Does the Ship To Country/State|Province/City match the Customer's Country/State|Province/City? If yes, use the tax code/schedule assigned to the Customer.
  3. Does the Order's Ship To Country/State|Province/City have a Tax Code / Schedule in System Manager>Countries>SubDivisions>Locations, if yes then use it.
  4. Does the Order's Ship To Country/State|Province have a Tax Code / Schedule in System Manager>Countries>SubDivisions, if yes then use it.
  5. Does the Order's Ship To Country have a Tax Code / Schedule in System Manager>Countries, if yes then use it.
  6. If none of the above apply, Use the default Tax Code / Schedule from Web Site Settings>Customer Defaults.

When creating a new customer in BirdDog, similar logic is used to automatically set the tax code or schedule at the customer level:

  1. Does the Customer's Country/State|Province/City have a Tax Code / Schedule in System Manager>Countries>SubDivisions, if yes then use it.
  2. Does the Customer's Country/State|Province have a Tax Code / Schedule in System Manager>Countries>SubDivisions, if yes then use it.
  3. Does the Customer's Country have a Tax Code / Schedule in System Manager>Countries, if yes use it.
  4. If none of the above apply, Use the default Tax Code / Schedule from Web Site Settings>Customer Defaults.

Logic Assumptions:

  • Default Customer Tax Code / Schedule is set to a nontaxable Code / Schedule. See Customer Defaults in Site Settings.
  • All Countries, States / Provinces, and Cities in which you are taxable have a default Tax Code / Schedule. See Countries / Provinces.

BirdDog honors the taxable/non taxable setting on items and the Tax Schedule assigned to the Item / Location.

(Tax Schedule on the Item / Location is the trick to charging sales tax correctly in complicated scenarios)

To determine if/when you should charge tax speak with your Sales Tax advisor.

 
Scenarios:

Assigning Tax Schedules in the State(s) where I have Nexus

Company XYZ charges tax in Oklahoma only.

  • In Customer Defaults, Customer Tax Code is set to Non Taxable.
  • In System Management/Tax Codes we set up tax codes for Oklahoma State Tax plus the individual tax codes for all cities and counties in Oklahoma.
  • In System Management/Tax Schedules we set up tax schedules that 'package' the individual tax codes into one schedule. For instance, I may have a tax schedule that includes the individual taxes for the State, City and County.


When a new customer visits the website, adds items to the cart and checks out they are creating a customer. 

  • If that customer is in any State besides Oklahoma they are assigned a tax code of Non Taxable.
  • If that Customer is in the State of Oklahoma they will be assgined the Tax Code / Schedule from Country | Provinces.