Why Aren't My Taxes Calculating The Way I Want?

In This Article

Choosing the correct Tax Option in Commerce7

Food-Specific Tax Calculation 

Other Factors to Consider

Choosing the Correct Tax Option in Commerce7

If your taxes are not calculating as expected, it is likely because you are using the incorrect tax option to calculate taxes in Commerce7. There are three tax options in Commerce7 for US clients:

1. Basic Tax Rates which is a free integration we offer that pulls tax rates based on a local State tax table managed by ShipCompliant. These tax rates are managed by ShipCompliant and cannot be edited by Commerce7.

2. Full ShipCompliant integration which requires a paid ShipCompliant account and will pull tax rates as setup in your ShipCompliant account. 

The basic tax rates options is automatically activated on Commerce7 accounts, so if you notice your taxes are off and you have a paid SC account, you should check the configuration of your SC App in Commerce7. You will want to make sure that the field called 'USA Taxes From' field is set to ShipCompliant and not ShipCompliant (free courtesy of Commerce7).

3. Manual Tax Rates - if you have Manual Tax Rates set up, go to the Manual Tax table to confirm that the rate for the state in question is correct. Go to Settings > Taxes > United States to check. 

Food Items Specifically

If your food items are not charging tax the way you expect, please take a look here for some troubleshooting tips.

Other factors to consider

1. One key factor is the Order Type, as it determines where taxes are calculated.
   1. For shipping orders, taxes are based on the shipping address.
   2. If an address is added to an event ticket order, it may be classified as a shipped order, resulting in taxes being calculated based on that shipping address rather than the event location.
   3. For event tickets, taxes should typically be calculated based on the event location.
2. If you utilize Automatic Rates, then you will have the option to search based on specific shipping address. Learn more about the lookup feature here.
   1. Go to Settings > Taxes.
   2. If Automatic is enabled, scroll down to the Tax Rate Lookup section.
      
   3. Enter the address and click the View Rates button.
   4. The current rates will populate below that - broken down by General Merchandise, Wine, Food, and Freight.