In a few simple steps, Chec can help you tax your sales automatically, regardless of where customers are purchasing from.
Setting up tax support
Go to the Setup navigation tab and select Tax.
Enable Tax if you want Chec to manage how your tax is calculated for every order you make.
If you include tax in your price, Chec will separate tax from the total sale order.
If tax is not included in your price, Chec will add tax to the sale.
If selected, your taxes will be calculated using this formula:
TAX = (TAX RATE * PRICE) / (1 + TAX RATE)
e.g. £20.00 at 20% VAT will be £3.33.
Add your business address to help Chec calculate tax. This address will be displayed on your invoices.
Add the countries you make sales in. You can set taxes on physical and digital goods separately.
Tax in the United States
You are required to collect sales tax in states in which you have nexus. When you add a nexus state it is automatically stored, even if you click "Cancel"
What is Nexus?
Sales tax nexus occurs when your business has some kind of connection to a state. All states have a slightly different definition of nexus, but most of the time states consider a “physical presence” creates nexus.
Add your nexus states zip codes where you conduct business or have a presence in. ie warehouse, distributor.
Chec will then automatically calculate sales tax including county, municipal and other taxes.
Sales tax not being calculated?
Chec identifies where your customer is based on their IP address which will then automatically calculate their country tax rate. If however you have regional tax rates set, the full taxed amount will not be displayed until the customer enters their shipping address. Once a shipping address is entered, the full tax rate will be calculated and added to the checkout total.
Will Chec submit taxes on my behalf?
Chec helps to separate tax from your orders so when it is tax season it is much easier for you to record and submit your own taxes. Chec however will not submit taxes on your behalf, you will have to manually submit your own taxes.