How To Charge Sales Tax

For sales tax to be charged on a web order, several things have to happen. First, sales tax is applied to Web store sales based on an accounting preference. To set or change this preference, go to Setup > Accounting > Set Up Accounting. On the Web subtab, choose one of the following in the Charge Sales Tax on Store Orders field:

• Always – Customers will be taxed if the customer record is marked as taxable or if the customer's Shipping Address is located in a state where you have a physical business presence. You indicate this by creating sales tax items for the states you have a physical presence in.
  To default all customer records to taxable, go to Setup > Set Up Accounting. On the Tax subtab, check the Customers Default to Taxable box and click Save.
   
• Never – Sales tax will never be applied to a Web store order.
• Per Customer Basis – Customers will be taxed if the customer record is marked as taxable. If the Taxable box is cleared, then sales tax will not be charged to the customer who is placing the order.
  To mark a customer record as taxable, go to Lists > Customers. Click Edit next to the record you want to make taxable. On the Financial subtab, check the Taxable box and click Save.

You can choose to have your new customers automatically charged sales tax on purchases. When you create a new customer, the Taxable field on the Financial subtab of the customer record will be checked.

If you have entered customer records before turning on this preference, those records will not be affected. To change existing records, go to Lists > Customers, click Edit next to the record you want to change. Click the Financial subtab and check the Taxable box.

To have customers default to taxable:

1. Go to Setup > Set Up Accounting.
2. Click the Tax subtab.
3. Check the Customers Default to Taxable box.
4. Click Save.

Finally, the items you sell must also be marked as taxable. To do this, please go to Lists : Accounting : Items, and edit the record for Xerox DocuMate 252. Make sure the Taxable box is checked. Once you have satisfied all the criteria (item is taxable, customer is taxable, sales tax items have been created for that zip code) your web store should calculate tax.