Location: Control Panel > Tax Profile

Tax Profile options can be set for all U.S. states, U.S. territories, Armed Forces and Canadian provinces. Because tax laws vary by state and country, ChannelOnline encourages resellers to consult a tax attorney to verify the legality of their tax profiles. For each state you can set the following selections:

• Collect tax yes/no per state/province
• How to collect tax (method by state):
  • Do not collect tax from customers in this state.
  • Calculate sales tax based on ship-to location.
  • Use the sales tax rate of billing location.
  • Calculate sales tax based on our nexus location.
  • Calculate sales tax based on our headquarter location.
  • Calculate sales tax based on our salesperson location.
  • Calculate use tax based on ship-to location.
  • Calculate use tax rate of billing location.
  • Calculate use tax based on our nexus location.
• Services yes/no
• Freight yes/no
• Enable E-Waste for states and provinces that charge E-Waste (setting at bottom).

Note: that some states tax freight, and ChannelOnline will automatically tax freight on those states by default.  Service items will be taxed with service rates only when they are of service item type.

Establish tax preferences (steps):

• Choose the state in which you would like to edit your tax settings by clicking on the edit icon.
• Select whether the state should be Taxed or Not Taxed by checking the corresponding checkbox.
• For taxed states, choose the Tax Collection Method to be used from the drop-down.
• Select whether Freight and Service should be taxed for that state by using the appropriate checkboxes.
• If you choose the “Nexus Location” method, then you must also enter both the Nexus City and Nexus Zip code.

Click the “Save” link to commit your changes.

E-waste / Environmental Fees:

• If you do business in states or provinces that apply e-waste fees, enable that checkbox at the bottom of the page.  The setting will automatically save when you navigate away from the page.
  Note: E-waste is updated annually in the system or when a major change event happens at the state/province level.

Tax calculations for customers using Default Tax Rate are determined by the Shipping Address. Please confirm tax is being collected for that state in the Tax Profile and then make sure that the City, State, and ZIP code combination is correct. In addition, please ensure that the City and ZIP code values do not have unnecessary white space at the end or beginning of the value.

Coverage:

• US uses tax service provider Avalara for automated coverage for street level tax rates for all 50 states, The District of Columbia and Puerto Rico.
• Canada covers all provinces.
• UK uses a manual single VAT tax rate.

TIP: It’s typically a good idea to enable the option: [ ] Re-apply price profile rules and update tax rates when a quote is copied. Turning on this feature will force ChannelOnline to re-query the price profile rules for all products on a quote when it gets copied from one customer to another.