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About tax calculation

NewStore Omnichannel Cloud facilitates automatic tax calculation for each order using a third party tax calculation provider. As a failover alternative, NewStore also allows you to configure a default fixed tax rate.

Using an integrated tax calculator​

NewStore integrates with third party tax calculation providers, Avalara AvaTax and Vertex, to calculate the taxes charged to your customer for each order, based on the tax laws and regulations applicable to the order.

For example, if your business is located in New York City but ships products to Berlin, the tax calculated can vary depending on criteria such as the product, the tax rates applicable to the country you are shipping from or the country you are shipping to, as well as other ancillary tax regulations.

Using an offline default tax rate​

NewStore Omnichannel Cloud allows you to configure a default fixed tax rate to ensure that a sale is completed and taxes are calculated even when offline. Although the sale is processed by charging the customer the fixed tax rate, the correct tax amount that must be remitted for the sale is calculated by Avalara or Vertex, and must be reconciled in your business.

For more information on configuration settings for this feature, see Configuring a fixed tax rate fallback for Avalara or Vertex .

Reconciling fixed rate taxes​

Using the data in the order export , in NewStore Omnichannel Manager, you can identify the sales orders that were completed with the fixed rate and use this data in the reconciliation process.

Using a fixed rate per country​

If you don't use a tax calculation provider, NewStore Omnichannel Cloud allows you to define a fixed tax rate for each country that you do business in. This strategy cannot be used in combination with or as a fallback to any other tax strategy defined in NewStore.

Important

The fixed rate per country is a basic tax calculation strategy that does not consider tax classes, the source of the sale, the shipping origin and destination, and tax exemptions.

To calculate taxes with all these considerations, we strongly recommend that you integrate a third party provider like Avalara or Vertex.

For more information on configuration settings for this feature, see Configuring a fixed rate per country .

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