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. Automatic Tax Rates: Commerce7 offers ShipCompliant-supplied tax rates based on shipping address.

These tax rates are pulled in real-time from ShipCompliant (at no additional cost to you) -  and use ShipCompliant’s default rates. You do not need to have a ShipCompliant account to use these rates.

The only exception is for CA addresses. CA tax is always calculated at the local level, regardless of where the winery is shipping from.

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

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.