The US Taxes module provides basic functionality to work with inner-US orders. You can tell xentral which destinations you regularly ship to and the correct state and local sales taxes to use, xentral will then automatically apply the taxes to orders from these destinations. The module cannot determine based on the delivery address perfectly which sales tax to use - for this function, a taxation tool would like Avalara is required.
You can find the module in the App Store in the Accounting section.
Overview
This tab shows an overview of the created destinations for your shipments. You can create a new destination by clicking on +New .
State: Name of the U.S. state
Incl. shipping: Says if shipping cost articles are also to be taxed
Avg. tax rate: Tax applied on orders sold to this state
Is nexus: Always activated when you sell to this state
Nexus condition count: Will count the number of orders to this state
Nexus condition sum: Calculates the revenue of the orders in US-Dollars
Is Economic Nexus: Will switch to „yes“ once you have an economic nexus for this state. When you cross a certain revenue for orders in this state you will have to apply the tax
Special taxes
In this tab, you can create special taxes that apply to certain ZIP codes or cities within a state.
The example in the screenshot below says that when you sell to a certain ZIP code in Gwinnitt County you do not only have to apply the sales tax of the state Georgia, but also an additional 2 percent on top of that. If you sell a product to someone from Fairbanks in Alaska you will have to apply an additional 0.5 percent tax.
It is possible for different districts within a city to have different tax rates within one city. Tax rates can be set in xentral based on a single ZIP code.
Tax Codes
This tab shows tax codes for particular articles that have specific tax rates in different states. When you sell clothing to customers in New York tax rate would be 9.5 percent. Only if the order is below 110 dollars the order is tax-free for clothing articles.
You can create new tax codes here and mark them as tax exempt in general or tax exempt below a certain threshold.
Logs
This tab keeps track of states that became an economic nexus according to the amount of orders and revenue of your orders sold to this state.
Settings
In the setting tab you can tell the module the state you are selling from and the standard tax code. Also you can tell the module which projects it should consider for adapting tax rates. It is possible to have inner US orders which this module does not affect, if you separate them into different projects.