Sales Tax Overview

The CORESense Sales Tax Manager allows you to define Sales Tax Rules, which determine how sales tax is calculated on products and shipping charges across all channels. In CORESense you can create three types of Sales Tax Rules as defined below.

Rules	Description
Product Sales Tax	Created for each state or zip code>/state combination where product sales tax is to be collected, and must be explicitly assigned to the corresponding products. This allows for different Products to be taxed differently in the same zip code/state or state.
Shipping Sales Tax	Created for each state or zip code/state combination where shipping tax is collected. Shipping Sales Tax Rules apply to all orders and are not assigned to individual products. The rate specified is applied to the entire shipping cost.
Shipping- Taxable Items Only	Used for orders containing both taxable and non-taxable items. Some states require that shipping tax only be applied to the shipping for taxable items. CORESense applies these rules by first determining the percentage of the order subtotal comprised of taxable items. It then applies this percentage to the total shipping cost before calculating the Shipping sales tax.

Sales Tax Rules and Sales Channels

Sales tax rules of all types are applied to all sales channels and cannot be configured specific to a channel or channels.
Once a Sales Tax Rule has been created, it cannot be deleted. The Rule can exist without any products or values associated with it, but it cannot be entirely deleted.

POS Orders

Orders placed through the Point of Sale (POS) are handled as follows:

Take Now – CORESense looks to match the state and/or zip code of POS terminal.

Send Sale – CORESense looks to match the state and/or zip code of the shipping address associated to the order.

Non-POS Orders

For orders placed through the website, eBay, Amazon or the sales order interface, CORESense looks to match the zip code and/or state of the shipping address associated with the order.

Sales Tax Rules Calculation

The table below details how CORESense calculates are applied for each type of rule. If multiple Sales Tax Rules could apply, CORESense prioritizes the rules as follows:

Sales Tax Rules with a matching zip code and state and,
if there is no rule with a matching zip code and state it uses a rule with a matching state. If two or more rules exist with the same zip and state or state, CORESense will apply the rule with the lower rate.

Rule	Calculation
Product Sales Tax	CORESense looks at what Product Sales Tax Rules have been assigned to the products on the order for the shipping state and/or zip code associated to the order. CORESense applies the appropriate Product Sales Tax Rule to an Order ’ s items after all appropriate order level and item-level promotions, discounts and adjustments have been applied.
Shipping Sales Tax	CORESense looks at the shipping state and/or zip code associated with the order. Calculated on the total shipping charges for the Order.
Shipping- Taxable Items Only	CORESense looks at the shipping state and/or zip code associated with the order. Calculated on the percentage of the shipping charge allocated to the taxable order items in the order. The percentage is taken as the ratio of the taxable order items (products) selling prices to the selling prices of all order items in the order.