Easily calculate taxes with our new tax feature
Do you want to calculate tax and add it to your product price? Read on for instructions on adding taxes to your product pages.
NOTE: You must be on a new SamCart plan (Launch, Grow, or Scale) to utilize the tax feature. SamCart currently only supports tax for the US, Canada, Australia, and the EU.
Enable Taxes for Your Marketplace
Follow the directions below to enable taxes for your products.
- Navigate to your General Marketplace Settings
- Enter your physical business address under Marketplace Address. You must provide a physical address to utilize the tax feature.
- If your business pays VAT tax, there is an optional VAT ID field in the Tax Settings section:
- If your business has a nexus in an additional region, navigate to the Tax Settings section in your General Marketplace Settings
- Click on the Add Nexus button to enter in an additional address:
- In the “Add Nexus” pop-up, the user will have the option to select a US address or non-US address by first selecting a “Country”
- If a country other than the United States is selected, the State Tax ID field will switch to VAT ID
- After entering a country and address, a nexus will be created! SamCart will begin collecting tax when customer states or countries match the established nexus and tax is turned on for that product (check out the Turn on Taxes for Individual Products section for more information on this).
Turn on Taxes for Individual Products
Next, you will need to enable taxes for each of your products individually:
- Click on the Products tab
- Select any product (or create a new one)
- Click on the Checkout Design tab and launch the Drag & Drop Builder
- In the right hand toolbar, go to Settings > Checkout Form and ensure that Billing Address and/or Shipping Address is checked. An address must be enabled to turn on tax collection. If both a billing and shipping address are provided, tax will be calculated based on the shipping address.
- Next, navigate to the Advanced Settings tab
- Scroll to the Taxes section and toggle Collect Sales & VAT Taxes For Product to Yes
- Click Save Changes and you're good to go!
(Optional) Selecting a Tax Category
SamCart provides hundreds of Tax Categories to choose from! In the Taxes section of the Advanced Settings tab inside your product, you will have the option to select a tax category.
By default, the Tax Category will be set to None. The None option will provide the full taxable rate for every locality (country, state, city) we have data for.
If you'd like to have the exact sales tax calculation for the product you sell you will want to select your product's category from the Select Tax Category dropdown.
For example, if your product is taxed at a reduced rate, you will need to adjust the Tax Category to ensure you are not over-charging your customers.
Note: Tax Categories are exclusively used for US sales tax calculations. The Tax Category is not referenced on non-US VAT calculations.
Changes To Your Checkout Page
Once a customer enters their Billing Address on your checkout page, a Tax line will appear in their Order Summary:
Tax will also be clearly noted on the Order Summary Page:
As well as in the Order Details view of your SamCart Marketplace:
Frequently Asked Questions
Q: Will turning on taxes for a product impact existing subscriptions?
A: No - current subscriptions will continue on their current cadence for the amount that the customer agreed to pay during checkout. Moving forward, if taxes are turned on for a subscription product, all new subscriptions will charge taxes.
Q: Why do I need to have my Marketplace address entered to collect taxes?
A: To properly calculate tax charges, we need to know both your physical business address and the customer’s address.
Q: What if taxes are not showing up on a product where taxes are turned on?
A: If the tax is not showing up on your checkout page, first ensure that the customer billing address is correct and filled in. If the customer billing address is filled in and taxes are still not showing, it is likely that taxes do not need to be collected for the purchase. No sales tax is collected if you do not have nexus in the same state (US) or country as the customer's delivery address.
Q: How are taxes calculated for Order Bumps and Upsells?
A: Order Bumps and Upsells will only be charged tax if the primary product has tax collection turned on.
Q: What if I’m currently using Taxamo to calculate taxes? Can I convert to SamCart’s tax calculation (via Taxjar)?
A: You can convert from Taxamo to Taxjar, but there are some advanced features that Taxamo offers that may not have equivalencies in SamCart’s implementation of Taxjar.
Q: I am in Canada. Can I charge CAD taxes?
A: Yes, this is a new option for Marketplaces selling within Canada! You can now charge CAD taxes. To do this, you will need to reach out to Support at firstname.lastname@example.org. A Support Agent will then have you fill out a CSV file with the percentage of tax you would like to charge for each Providence in Canada and they will enable CAD taxes for you.