How to confirm that the tax is calculated normally outside of California

  • Resolved allysa01

    (@allysa01)


    1 month ago

    I use woocommerce tax to calculate taxes automatically.

    The configuration related to automatic tax calculation has been enabled, and currently the webpage shows tax collection if the ordering address is in California, and not if other US states are selected.
    I understand that some states require a certain amount of sales or number of orders to calculate the tax.
    So I’ve created orders with different amounts and addresses through the backend, but this doesn’t seem to work.
    For example, I created 200 orders in New York, and then placed an order on the website after that, and still no tax shows up.
    Is it an order created in the backend that won’t be calculated into the sales amount range?
    The debug log is below:

    2024-10-18T06:33:30+00:00 NOTICE Received: {"tax":{"amount_to_collect":0,"freight_taxable":true,"has_nexus":false,"order_total_amount":90.0,"rate":0,"shipping":0.0,"tax_source":null,"taxable_amount":0}} (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:31+00:00 NOTICE :::: TaxJar Plugin requested :::: (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:31+00:00 NOTICE :::: TaxJar API called :::: (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:31+00:00 NOTICE Received: {"tax":{"amount_to_collect":0,"freight_taxable":true,"has_nexus":false,"order_total_amount":90.0,"rate":0,"shipping":0.0,"tax_source":null,"taxable_amount":0}} (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:39+00:00 NOTICE :::: TaxJar Plugin requested :::: (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:39+00:00 NOTICE :::: TaxJar API called :::: (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:39+00:00 NOTICE :::: TaxJar API request validation :::: (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:39+00:00 NOTICE API request is in good format. (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:39+00:00 NOTICE Requesting: taxjar/v2/taxes - {"from_country":"US","from_state":"CA","from_zip":"91745","from_city":"city of industry","from_street":"Cy Center","to_country":"US","to_state":"NY","to_zip":"10004","to_city":"YORKTOWN","to_street":"3539 tulip drive","shipping":"20","plugin":"woo","line_items":[{"id":"4278-6fc7d067c8cc18d8f65df6f0d85692dd","quantity":2,"product_tax_code":"","unit_price":"30","discount":"0"},{"id":"4278-4d0755ca2bfe7b956ab8d50b503096e0","quantity":1,"product_tax_code":"","unit_price":"30","discount":"0"}]} (WCS Tax) CONTEXT: {"_legacy":true}
    2024-10-18T06:33:39+00:00 NOTICE Received: {"tax":{"amount_to_collect":0,"freight_taxable":true,"has_nexus":false,"order_total_amount":110.0,"rate":0,"shipping":20.0,"tax_source":null,"taxable_amount":0}} (WCS Tax) CONTEXT: {"_legacy":true}

    Is there any way that I can confirm that the tax is calculated normally outside of California?

Viewing 4 replies - 1 through 4 (of 4 total)
  • Plugin Support Reynier C. (woo-hc)

    (@reynierc)

    Hi @allysa01 ,

    I understand you’d like to check tax calculations outside California.

    For automatic tax calculations, the system checks if you have a nexus in the state based on your sales data. Since you’re not seeing taxes for New York, it likely means the system thinks you don’t have nexus there.

    To confirm taxes are working as they should, try simulating a purchase through your website as a customer from a state where you know you’ve reached economic nexus, or use the WooCommerce Tax Settings to manually set rates for that state.

    Also, it’s a good idea to check TaxJar’s nexus insights feature to see where you stand with each state’s requirements.

    Please also read our WooCommerce Tax Guide for more details on managing the settings.

    Hope this helps!

    Thread Starter allysa01

    (@allysa01)

    Hi,@reynierc ,

    Thank you for your reply. I have learnt about the tax collection thresholds required in each state.
    Using Nevada as an example, I would like to ask a few more questions:

    1. This tax nexus, is it only required to be calculated on the amount of the order on woocommerce?
      Because I tried to use API or backend to create orders up to $100,000 sales, the place an order on website, and it still shows that there is no need to collect tax.
      I’m not sure, is it because orders created in this way are not included in the statistics? Or is it because I have not completed the relevant tax registration on NV?
    2. My business address is in California and I use woocommerce tax to automatically calculate taxes. If I place an order with a simulated NV address after reaching the $100,000 sales threshold, and I have not registered my NV tax ID, will the site calculate the tax automatically?
    Plugin Support Reynier C. (woo-hc)

    (@reynierc)

    Hi @allysa01 ,

    Thanks for your reply! I’m happy to help clear things up based on your questions.

    This tax nexus, is it only required to be calculated on the amount of the order on woocommerce?
    Because I tried to use API or backend to create orders up to $100,000 sales, the place an order on website, and it still shows that there is no need to collect tax.
    I’m not sure, is it because orders created in this way are not included in the statistics? Or is it because I have not completed the relevant tax registration on NV?

    Yes, the tax nexus is based on real orders placed on WooCommerce. Orders created using the API or backend don’t count towards the $100,000 sales threshold. Those simulated orders aren’t included in the tax calculations. Also, even if you reach the threshold with real sales, you must register for tax in Nevada (as an example) to collect it. If you haven’t registered yet, that’s why tax isn’t being collected for Nevada orders on your site.

    My business address is in California and I use woocommerce tax to automatically calculate taxes. If I place an order with a simulated NV address after reaching the $100,000 sales threshold, and I have not registered my NV tax ID, will the site calculate the tax automatically?

    If your business is in California and you use WooCommerce Tax to automate tax calculations, the site will not automatically calculate the tax for Nevada unless two conditions are met: you’ve reached the sales threshold in Nevada with real customer orders and you’ve registered for a Nevada tax ID. If you don’t have a Nevada tax ID yet, the site won’t calculate Nevada tax, even if you’ve passed the sales threshold.

    More information related to what you’re experiencing specifically can be found here: https://woocommerce.com/document/woocommerce-shipping-and-tax/woocommerce-tax/#automated-taxes-do-not-appear-to-be-calculating

    I hope this helps!

    Plugin Support Feten L. a11n

    (@fetenlakhal)

    Hi there,

    Since it’s been a while without a response, I’ll mark this as complete. Don’t hesitate to reach out whenever you’re ready to continue.

Viewing 4 replies - 1 through 4 (of 4 total)
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