Disclaimer: We recently redesigned our Admin Area. Your store may look different than the one shown in this video, but most click paths were not affected.
Ecommerce taxes can be a challenge to set up and maintain. Fortunately, Volusion lets you charge sales taxes on all US purchases with automatically calculated rates. To take advantage of the functionality, you only need to define your business location; we’ll take care of the rest.
To set up automated tax rate calculation, go to Settings > Tax. Here, you’ll see a suggested tax rate based on the location you specified when you purchased your monthly hosting plan. You can either accept it or change it.
Currently ecommerce taxes only apply to same-state sales, and taxation policies vary by state. Some states charge tax based on your business location. In these cases, the rate you see is based on your zip code and it already includes county and municipal taxes. Other states charge tax based on the shopper’s location. In these cases, rates vary by the order’s shipping address, which means you’ll have to accept a range of possible rates that may apply based on various county and municipal taxes charged throughout your state.
If your business files taxes in more than one state, you can add extra locations by clicking Add. Simply select a state, enter your zip code if prompted, evaluate the suggested rate, and click Add to accept and activate it. All activated rates display in the table at Settings > Tax.
Please be aware that Volusion’s automated rate calculation is based exclusively on zip code, which may not correspond directly to municipal and county taxation jurisdictions. To ensure accuracy of automatically calculated rates for any given address, we recommend you consult your state’s taxation authority.
By default, state, county, and municipal rates display as a single combined total on the storefront. In the Admin Area, you’ll see them itemized by type.
For more information on our automated tax calculation feature, visit our support site and search for our article, Volusion Automatic Tax Feature.
If you’re based outside the US, or if you prefer to set up tax rates yourself, see our video called, How to Add and Edit Sales Tax Rates Manually.