Configuring US sales taxes
Considerations
When sales tax should be charged to visitors
You must charge sales tax to visitors who reside in any state where you have either a and sell them a taxable product. Read our US sales tax guide for more information about nexus. If you do not have a nexus in a state, you do not need to charge sales tax to visitors who originate from that state.
When you need a sales tax ID and how to obtain one
If you have nexus within a state, you must register for a sales tax ID with that state. You must register for a sales tax ID in every state in which you have a nexus and obtain a separate sales tax ID. Read our state-by-state guide for more information on how to register.
Configuring a nexus
Configuring a nexus
To configure a nexus within your ShopWired account:
- Navigate to Settings > Taxes
- Select
add new nexus - Select the Nexus type, either or
- When selecting
physical locationenter the full address of the location; this is used to calculate local tax rates within the location- Refer to the address verification guidance below
- Select
add nexus - Navigate to the tax locations section
- Select
editfor the nexus you have created - Enter the Sales tax ID
- Save your changes
Address verification
When creating a physical location, ShopWired verifies the address information with .
If the address cannot be verified with USPS, a warning will appear and you should correct any errors and select the option revalidate. It is possible to create a nexus without validation, but ShopWired strongly recommends any addresses for physical nexus you configure are validated.
Once you have added your nexus within a state in your ShopWired account, ShopWired will automatically begin to charge sales tax to visitors who enter an address from that state when completing checkout on your website. ShopWired is configured with default rates for the state, county, city, and district levels and will automatically configure the rates based upon whether or not the state is a destination or origin state.
Assigning tax codes to products
Assigning tax codes to products
In some states, some products attract a different sales tax rate than the default. For example, in Pennsylvania, most clothing items do not attract any sales tax. For many types of products, you can assign a tax code to the product when creating or editing it, and ShopWired will use the information when calculating sales tax.
Configuring a tax code for a product:
- When creating or editing a product, navigate to the Product pricing section
- Use the Tax code setting to select the appropriate tax code category for your product
Important information when assigning tax codes for products
- ShopWired's list of tax codes is supplied by TaxJar and cannot be modified by ShopWired. If you don’t find an appropriate category for your products and would like it to be added, then you must contact TaxJar directly by emailing support@taxjar.com
- It is your responsibility to ensure that you are using tax codes correctly. ShopWired support cannot tell you if a tax code can be applied and, if so, which tax code you should apply to your products. If you have any questions about whether you should use these tax codes, you should consult a tax professional
- If you find that assigning one of TaxJar’s tax codes to your products doesn’t calculate sales tax correctly for your business’s circumstances, create a custom tax rate
Calculating sales tax on orders you create
Calculating sales tax on orders you create
When creating an order through your ShopWired account and the order is for a customer in which you have a nexus, you must select the calculate sales tax option before the order can be created. This option is located in the Details and confirmation section.
On selecting the option, sales tax will be automatically calculated and added to the order total.
