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 Settings > Tax in the dashboard
Enable tax if you want Chec to manage how your tax is calculated for every sale you make. Chec will only display tax in your order reciept.
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.
Now create your tax rate zones.
Add the countries you make sales in.
Set the region tax rate for physical and digital goods separately.
Configure the state or regional tax calculation to 1 of the 3 options.
Tax in the United States
You are required to collect sales tax in states in which you have NEXUS.
Enabling automatic sales tax will calculate NEXUS in the states you do business from.
What is NEXUS?
Sales tax NEXUS is for US businesses and occurs when your business has some kind of connection to a US state. All states have a slightly different definition of NEXUS, but most of the time states consider a “physical presence” creates nexus. You are also required to have a nexus presence in states where you have a high volume of sales, or a high revenue from sales, this can apply to business outside of the United States.
Add your NEXUS state's zip codes where you conduct business or have a presence in. ie, a warehouse, distributor
Chec will then automatically calculate sales tax, including municipal and other taxes.
Tax in Europe
For European businesses, collect EU digital goods VAT (VAT MOSS) tax on digital goods. Tax rates are automatically calculated and applied to EU customers.
Enable if VAT MOSS applies to you.
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?
No. 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 will not submit taxes on your behalf, you will have to manually submit your own taxes.