Nexternal's E-Commerce Sales Tax Calculator

Nexternal's e-commerce software offers many ways to calculate online sales tax. For merchants that need to calculate sales tax down to the lowest level of jurisdiction such as the county and city level, Nexternal uses data from Tax Data Systems. These tax tables are updated monthly by TDS and contain over 40,000 records. Online Merchants also have the option to charge a flat rate sales tax for an entire state. This is the method that many merchants find simplify their tax collection requirements. Regardless of the method of calculation, Nexternal's shopping cart will only calculate sales tax on orders that are shipped to states that the merchant defines. Typically, these are states in which the merchant has a physical presence. Should a merchant need, they can also over-ride sales tax rates at the postal/zip code level. Canadian merchants can calculate sales tax at the Province level.

Nexternal also provides the ability to define taxable at the product and customer type level. Some food products may never be taxed while some may be taxed just in certain states. Additionally the merchant can also decide whether or not certain customer types are taxed. It is common for companies to not charge tax in business to business transactions. To make matters more complicated, some states require that shipping is also taxed. Fortunately Nexternal allows merchants to define this parameter at the state level.

Many merchants find that reporting taxes can be time consuming. To stream-line this process, Nexternal includes a comprehensive sales tax report to break down sales tax charged by jurisdiction.

Sales tax laws are complicated and not every merchant interprets them the same way. Nexternal's sales tax feature is flexible and easy to use, allowing merchants to charge sales tax in the way that works best for their business.

If you are interested in learning more about how your company can utilize Nexternal's e-commerce software, please call 800-914-6161.