In Soapbox, you are able to collect state tax on products sold through the Shop app. To do so, you can create one or more Sales Tax Regions in the Shop app to apply a percentage tax on all products in an order for one or more U.S. states. If applicable for a given state, the sales tax rate can also be applied to the shipping cost for those products.
While this allows you to collect state sales tax, it does not submit payment to the given U.S. state. You will be responsible for sending sales tax to the appropriate state.
Prior to creating sales tax rates in the Shop app, you must determine to which states your organization is liable to pay sales tax and the applicable sales tax rate for those states - as well as whether the goods and services you are selling through the Shop app are taxable given your organization's tax status.
In the United States, a company or organization is typically required to pay sales tax in a given state if it has a sales tax nexus in that state. A sales tax nexus is a connection or presence that a business or organization has in a state that requires the business to collect and remit sales tax on purchases made by customers in that state. Each state has its own rules and regulations regarding what constitutes a sales tax nexus, and it is important to understand and comply with these rules in order to avoid penalties and fines. In some cases, a company may be required to register with the state and obtain a sales tax permit in order to collect and remit sales tax.
You can find the sales tax rate for a particular location by visiting the website of the state's department of revenue or by consulting a sales tax rate table.
Once this has been determined, you'll want to create a Sales Tax Region in Soapbox for each of these states.
It's important to note that sales tax laws can be complex and may change frequently. If you have any questions about sales tax, it's a good idea to consult with a tax professional or refer to the website of the state's department of revenue for more information.
To create a sales tax region:
- Go to Shop > Configuration
- Click on the Taxes tab
- In the upper right, click New
- In the popup, for Region, select the U.S. state or territory for which you wish to collect sales tax
NOTE: At this time, Soapbox assesses taxes only on a state-wide basis.
- For Tax Percentage, enter the sales tax percentage applicable to the U.S. state or territory. As an example, if the sales tax rate is 7%, enter 7. If the sales tax rate is 6.625%, enter 6.625.
- For Shipping Included, select Yes or No based on whether shipping fees should be included in the calculation of sales tax. Please reefer to the state's department of revenue for guidance on for this setting.
- For Published, select Yes or No, depending on whether you wish the Sales Tax Region to be active for the Shop shopping cart
- Repeat as needed to add additional Sales Tax Regions
You may further customize the title of the tax line item and set the product it should be associated with in Salesforce as follows:
- Scroll to the Tax Settings section on the Taxes tab of the Shop > Configuration
- For Taxes Title, customize the text for this line item as you wish it to appear to the visitor
- For Taxes Pricebookentry, click Select, find the Pricebook Entry of the taxes Product you created in Salesforce, tick the checkbox and click Save
- Click Save on the main Shop > Configuration view