Recommended Tax configuration for US States

J2Commerce (formerly known as J2Store)

This is an example setting for stores in United States. This also applies to many other countries that follow a US style of tax system. For detailed information on tax, please consult an expert.

Note: Current US law requires you to collect taxes where you have an interest/ongoing concern — that is, where you have physical stores, distribution centers, headquarters, and so on. For many online stores there is only one location. However, if you have stores that operate in many states or countries, or if you have revenues exceeding approximately $2M per year, we recommend that you use a third-party tax provider because there can be a considerable number of tax rules and tax zones to manage.

Important: No guarantee is offered with respect to any of the information given here. Please contact an expert before you take any decisions about tax matters

**NOTE:**The example given below, assumes you have a store in Texas and you charge 8.5% tax on the goods sold to customers in Texas. All customers coming from other states are NOT taxed

Step 1 : Create a geozone for Texas

Geozone setup

Geozone setup

Go to Localization -> Geozones -> New

Geozone Name: Texas Zone

Country : United States

Zone : Texas

Step 2: Create a tax rate

Go to Localization -> Tax Rates -> New

Tax Rate Setup

Tax Rate Setup

Name : Sales Tax (you can give any name here)

Tax Percent : 8.5

Geozone : Texas Zone

Enabled: Yes

Step 3: Create a tax profile and rules

Go to Localization -> Tax Profiles -> New

Tax Profile Setup

Tax Profile Setup

Name: Default Tax Class

Enabled: Yes

Tax rules

Click Add

Rate: Sales Tax

**Associated Address: ** Shipping

Step 4: Configure tax settings

Go to Components > J2Commerce > Setup > Configuration > Tax tab

Tax setup

Tax setup

Prices entered with tax: No, I will enter prices EXCLUSIVE of tax

Calculate tax based on: Shipping address

Default customer address: Store address

Display prices in product pages: Excluding tax

Display tax information below the prices: Example: (Incl. 19% tax). NOTE: This applies only to product pages

Display prices in cart / checkout : Excluding tax

Apply discounts : Before tax

Save.

Step 5: Add the tax profile to a product

J2Commerce uses Joomla! articles as products. So go to Article Manager and create a New Article / Product (If you use any other catalog source like Zoo or Sebold, you should head there).

Product creation steps are explained under the topic Products.

Here let us just see how to choose the tax profile

Go to J2Commerce (or J2Store Cart) tab > General tab

Tax Profile : Default tax class

Default tax-rate-for-Us-stores

IMPORTANT If you do not choose the tax profile, then tax will not apply in the store front.

Video Tutorial: