July 2024 - Calculate taxes at checkout for Pop-up shops

commonsku's Pop-up shops can now calculate accurate taxes for individual shipping addresses collected at checkout!

What does this mean for my Pop-up shops?

commonsku's Pop-up shops allow you to capture individual shipping addresses from your shoppers as they checkout so that you can drop-ship products right to their door - but now, you can calculate taxes based on individual shipping addresses rather than using a single tax rate for all of your checkouts! This makes it much easier for distributors to remain tax compliant, and simplifies split-shipment shop orders.

How do I enable tax calculation per checkout in my Pop-up shop?

Head to your Pop-up shop's Settings tab and scroll down to the Checkout settings. Once you've enabled the Collect shipping address at checkout tool, you can turn on the Calculate taxes at checkout feature, and select Checkout shipping address when choosing a method to base your sales tax calculations on. Then you can select a Tax Method, which includes options to include tax in the price of your items, leave all orders as tax exempt, or leverage either commonsku's Zip2Tax tool, or the Avalara integration to auto-calculate your taxes at checkout. 

If you have enabled Shipping charges within your shop, you can also indicate if you need taxes to calculate on the shipping costs.

commonsku's Zip2Tax tool is only applicable for US-based shipping addresses.

Please be advised that the Zip2Tax tool cannot identify which addresses fall within Origin based states versus Destination based states. It will always calculate sales tax based on the location of the shipping address, whether or not that address is in a Destination state. You can click here for more information on sales tax for Origin vs Destination states. 

Do my shopper's taxes aggregate on my sales order when I convert all of my checkouts?

No. As there can be hundreds of different taxes in a single shop shop, and since the end-client is paying the taxes directly to you as the distributor (rather than the end-client paying the taxes on the wholesale values), the taxes only make it as far as the CSV export, and are not transferred to the Sales Order or Invoice.  commonsku users should use the CSV to calculate their remittences, or import into their accounting system. 

Do I need to collect payment by credit card in order to use this feature?

No! Taxes will calculate whether the shopper is required to pay by credit card or not.

If you have any questions about the new sales tax calculation within your pop up shops, please send us an email at support@commonsku.com.