Woocommerce single product tax status trumps WooTax, and Tax Cloud

I signed up for Tax Cloud and use Woo Tax to calculate tax. I am trying to only collect sales tax when shipping to WA. Some of my products’ tax status is set to none while some is set to taxable. When I changed my shipping address on the taxable products the sales tax still showed up, even if the state I chose was listed as states without sales tax in tax cloud. When I chose products tax status none then I got no sales tax, even if I was shipping to WA.

My question is two-fold: 1) Does tax status taxable mean it will add sales tax no matter what?, and 2) what can I do to make sure any and all products get sales tax when shipping to WA?

Related posts

1 comment

  1. When using WooTax and TaxCloud, you should leave the WooCommerce “Tax Status” property as “Taxable” (regardless of your local laws – I will explain).

    This is because TaxCloud automatically determines the taxable status of what you are selling based upon the Taxability Information Code (TIC) selected (drop-down menu right below the main edit product panel). The TIC along with your orders’ origin and destination addresses, and your TaxCloud configuration control where you collect sales tax, and how much sales tax is due and collected.

    This way, if you are selling clothing or prewritten software, or any of the other categories of goods options possible, you do not have to know if the item is taxable, exempt, or partially exempt in the jurisdiction of your customer – just select the TIC category, and TaxCloud will handle it correctly for each transaction’s unique fact pattern (including sales tax holidays).

    So, to answer your questions:

    1. Be sure the product Tax Status is set to Taxable, to ensure
      WooCommerce doesn’t try to hide the item from TaxCloud for
      calculation.
    2. Be sure to set the appropriate TIC code for the
      product (review all the options).
    3. Within TaxCloud, in the “Tax States” area, configure where
      you want to collect sales tax.

    One more thing… Review your WooCommerce –> Settings –> Tax area to be sure everything is configured correctly:

    • Enable Taxes: True (Checked)
    • Prices Entered With Tax: No
    • Calculate Tax Based On: Customer Shipping Address
    • Shipping Tax Class: Based upon cart items
    • Rounding: Unchecked
    • Additional Tax Classes: [irrelevant – overridden by TaxCloud TIC for each product]
    • Display Prices in the Shop: Excluding Tax
    • Display Prices During Cart and Checkout: Excluding Tax
    • Display Tax Totals:: Itemized

    That’s all there is to it. Please feel free to call or email TaxCloud customer service if we can help in any way.

    Thanks!

Comments are closed.