Merchant Solutions has three options for tax calculation on checkout:

• Collect tax at checkout (recommended) - Use this rule to calculate the tax charges for orders as part of checkout. Buyers see tax charges listed in the cart during checkout.
• Do not collect tax - No taxes collected with no expectation of additional charges. Buyers do not see tax appearing in the cart during checkout. This is only applicable to merchants that have no tax obligations with their state or any state in which they may be required to collect tax. For example if a merchant was located in Oregon, which currently has no sales tax, and with no obligation to collect tax in other states, this merchant may not need to set up tax rates. Note however that merchants may actually wish to set up no charge tax rates so buyers can see they are not being charged tax in checkout (tax listed as $0) as opposed to not seeing a line item in their cart for tax.
• Collect tax after checkout - No taxes collected in checkout but expectation of merchant to add appropriate taxes by modifying the order. Buyers do not see tax appearing in the cart but do see a message in checkout that shipping and tax charges may be added after checkout. This option is not recommended as it may lead to buyer chargebacks if they check out and see one total and later are billed for a higher total.
  
  Note: You may wish to increase the authorization headroom for your payment processors in the Payment Center as adding charges without headroom may lead to declined settlements or additional transaction charges from the merchant account provider. Specifying a location for tax rule represent the shipping address for which the rule applies.

Note: These settings are not explicitly exposed in the Tax Wizard, only in the Manage Taxes page. If you opt not to collect tax in the wizard, your setting will be Do Not Collect Tax. If you finish the Tax Wizard with rules, your tax setting will be set to Collect Tax at checkout - even if you went to the Tax Rates page from the Store Manager prior to opening for business and selected a different setting.

Change your tax settings

1. Sign in to your My Services page.
2. Click the Store link.
   
3. Go to Tax Rates.
   
4. Click the edit link appearing to the right of Tax Setting.
   
5. Select the taxing method you wish to use.
   
6. Click the Submit button.
   
7. Return to Store Manager and publish your Order Settings.
   

Note: If you are unsure as to your state's requirements, contact your state's tax department or consult a tax specialist. To locate your state tax department's web site, visit the Federation of Tax Administrators.

Note: Turbify is unable to provide tax advice to merchants for determining your tax requirements based on your location(s) and products. Due to the financial and legal implications surrounding tax requirements, Turbify strongly recommends merchants consult a small business tax advisor for determining the exact tax rates applicable to your store.

See Also:

• Setting up tax rates in Tax Wizard
• Setting up tax rates in the Manage Taxes page
• Manage Taxes Overview
• Editing tax rates
• Adding tax to shipping charges
• Deleting a tax rate
• Filtering tax rates
• Excluding products from taxation