The Nexternal eCommerce Platform offers many ways to calculate online sales tax:
Regardless of the method of calculation, Nexternal's shopping cart software 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.
Nexternal's eCommerce software also allows merchants to define sales tax rates at the country level which can be helpful for countries that levy duties. Canadian merchants are able to calculate sales tax at the Province level.
Nexternal also provides the ability to define taxability 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. The to make sales tax reporting the least cumbersome, we recommend checking out Avalara.
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 eCommerce software, please call 800-914-6161.