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calvinphanctt

Charge tax on all orders 8%

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Hello everyone,

 

Could you please help me to set up the OScommerce to charge 8% for all orders, doesn't matter where the buyers live ?

 

Thank you.

 

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Hi,

first you'have to add a new tax zone under admin Locations / Taxes taxzones, name it to your liking, klick on the new folder there you can add countries and states, the first options should be all countries and states.

Then you go to tax classes and add a new one.

Then tax rates select your tax class and your zone and enter your 8%.

Best regards

Christoph

 

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First of all, check that you really are required to collect sales tax on all sales, regardless of where the buyer lives (destination address). If you are in the US, you are not required to collect state sales tax in another state (or country), unless you have a nexus there (a legally significant business presence). You can collect and remit sales tax in non-nexus states, but it has to be the proper rate. I've never heard of collecting sales taxes and VAT for other countries. Most states use "destination" address (where the shipment is delivered to) to determine the rate, while some states (I think California, among others), uses the "source" address (where the shipment is sent from). Outside the US, it's anybody's guess as to what the tax rules are.

If you are in, say, California, and your local sales tax rate is 8%, you would collect 8% on all your sales to California customers, but no one else. If you had a nexus in, say, Arizona, you would have to follow the rules for collecting sales tax on purchases sent to AZ.

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9 hours ago, MrPhil said:

I've never heard of collecting sales taxes and VAT for other countries.

@MrPhil Overseas companies with an annual turnover more than AUD$75,000 have to register with the Australian government and collect 10% Goods and Services Tax (VAT) for online orders sent to Australia. Probably unenforceable, but still...


osCommerce user since 2003! :thumbsup:

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The only way a US business selling to Oz could be persuaded to collect GST/VAT for you would be to have an Australian subsidiary or operations which can be held hostage in some manner. Otherwise, it ain't never gonna happen.The big attraction of ecommerce is that people decide they can get away without paying sales tax, even though they're legally supposed to (or the equivalent, "use tax"). The only solution will be for every state to eliminate sales tax (and raise other taxes, no doubt).

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2 hours ago, MrPhil said:

The only way a US business selling to Oz could be persuaded to collect GST/VAT for you would be to have an Australian subsidiary or operations which can be held hostage in some manner. Otherwise, it ain't never gonna happen.

I imagine the Australian Government will start blocking sites, as they've blocked PirateBay, if they don't comply.

http://sjm.ministers.treasury.gov.au/media-release/056-2017/

Note that "Member states in the European Union use this model for sales within the European Union, Canada uses it for magazine subscriptions, and Switzerland’s vendor collection scheme will commence in 2018."

This isn't going to go away. Governments hate their tax money leaking :smile:

 


osCommerce user since 2003! :thumbsup:

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On 7/31/2017 at 10:47 PM, frankl said:

I imagine the Australian Government will start blocking sites, as they've blocked PirateBay, if they don't comply.

I think that would start a trade war. The screaming over US companies being blocked, and charges of "unfair protectionism" for Aussie companies will be intense. Should be interesting...

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