Ch. 035. Tax Setup

PRESSERO > *Pressero Documentation Manual

Tax Settings

In This Chapter:

Introduction to Taxes

Tax Profiles and Tax Rates are created in Preferences (Admin > Preferences > Tax Profiles) and applied at the site level (Admin > [Select Site] > Settings > General tab). 

Regardless of whether the billing address is captured during the order or not, a billing address is always set per order, based on the rules in your Pressero store. The shopping cart and the Check Out page will always show the tax based on the rules you set here. If the customer changes the billing address while ordering, the cart and the Check Out page will reflect and update the tax based on the new billing address.

Pressero is used by customers in many parts of the world. Because of that, you will find many different possible scenarios for setting up tax rates. You only need to concern yourself with the areas of this page that apply to your specific requirements. 

Site Tax Setting Changes Window

On September 2, 2020, tax settings move from the Site level to the Preferences level inside Pressero. This section describes the changes made to Pressero. If you are an existing Pressero subscriber, please read through the information below so that you understand the options available to you. There are time savings advantages if actions are taken in a specific order.

What has changed?

After September 2, 2020, the way you implement taxes is known as a “Tax Profile.” Tax Profiles are created at the Admin level and can be easily assigned to multiple sites. This is the main advantage of this change – where previously you defined a separate tax plan for each of your sites, whether the plan was identical to any other or not – you can now consolidate identical tax plans under a single Tax Profile and apply that Tax Profile to multiple sites.

You still Apply the Tax Profile to a site at the Site level, which is now found in the Settings > General tab, but you will be able to create new Tax Profiles and view all your Tax Profiles from a single list page in Admin > Preferences > Tax Profiles.

You still can have different Tax Profiles for different sites if you choose; just give the Tax Profile a different name and apply it as appropriate at the site level.

The functions for setting taxes based on Postal Codes, State or Province, Country, or using a Flat Tax Rate remain the same as before but are found at the Admin level rather than at the Site level.

Important: This release does NOT require you to rework your current tax settings. You can convert your existing tax settings to Tax Profiles with a single click. There are time savings advantages to planning how you approach Tax Profiles. You can consolidate existing tax settings that are currently identical across multiple sites into a single Tax Profile. Setting this up first can save a significant amount of time.

What actions must be taken?

For subscribers with existing sites, Pressero gives you the option of saving your current site-level tax plan as a Tax Profile with one click. After the new tax settings release is live, upon the first time accessing the Tax area of your site (Sites > [Select Site] > Settings > Tax tab), you will be presented with the Site Tax Setting Changes window (shown below), which allows you to save your current tax settings as a new Tax Profile. But before you click the button, read the section below to understand the advantages of comparing your existing settings.

 

 

Before you click the Generate Tax Profile button, this step is where you can save time and effort. We previously mentioned that you can apply Tax Profiles to multiple sites, and that you can consolidate existing tax settings that are currently identical across multiple sites into a single Tax Profile. We recommend that you choose one of those sites – sites that use identical tax settings – to use as the basis of your first Tax Profile. Refer to the screen below to see what happens when you go to another site after you have generated your first tax profile. For the second site that you access (and any thereafter), you will be presented with the Site Tax Setting Changes screen that allows you select the first generated Tax Profile and assign it to that site. Repeat this step for each of the sites that use identical tax settings and all those sites will be using a single Tax Profile going forward.

 

If this is the first time accessing the Tax area of any site after cutover, clicking the green “Generate Tax Profile” button does the following:

  • Generates a new Tax Profile from those settings
  • Names the Tax Profile based on the site name
  • Assigns that Tax Profile to the site

Other than clicking the “Generate Tax Profile” button, there are no actions required. 

When you go to Admin > Preferences > Tax Profiles, note that the newly generated Tax Profile is listed.

 

To confirm that the newly generated Tax Profile is assigned to your site, go to Sites > [Select Site] > Settings > General and scroll down to the Tax area and refer to the Choose Tax Profile drop-down. The name in the Choose Tax Profile drop-down identifies the name of the Tax Profile set for your site. Note: There is no longer a Tax tab in Settings for that site – this area moved into Settings > General.

 

 

For Subscribers with Multiple Sites  

If you have multiple sites, once you have generated a new Tax Profile using the above process, Pressero recognizes this and provides you the option of using the new Tax Profile and assigning it to another site inside the Site Tax Setting Changes pop-up. In the example screen shown below, the user previously generated a Tax Profile based on the site named “Basic test1.” This Tax Profile is now available for the user to apply to other sites.

 

 

If You Don’t Know Whether Tax Settings Are Identical to Another Site

The steps up until now describe a scenario where the subscriber knows that sites use identical tax settings. If you don’t know for certain whether existing tax settings are identical to another site, simply click the Generate Tax Profile button in the Site Tax Setting Changes window and generate a new Tax Profile from that site. Then go to Admin > Preferences > Tax Profiles and click the pencil icon to the left of the Tax Profile name and review the settings. From there you can make the determination whether the settings for the site are identical to any other, and whether it is a candidate to be consolidated under another Tax Profile.

If You Need to Access Your Previous Tax Settings

If after you generate a new Tax Profile for a site, or you choose to use an existing Tax Profile for a site, you want to revert a site back to its previous settings, you can do so by deselecting the Tax Profile in the Choose Tax Profile drop-down in Sites > [Select Site] > Settings > General. Choose the “null” option (nothing selected) as shown in the screen below, then click “Save.” The old settings will return, the Tax Tab will return, and the Site Setting Tax Changes window will reappear the next time you access the Tax tab. 

 

 

Creating a Basic Tax Profile

This section describes how to create a Basic Tax Profile.

  • Go to Admin > Preferences > Tax Profiles as shown in the screen below.

 

  • Click the + Add New button to create a new Tax Profile.
 

 

  • Enter a name for this Tax Profile in the “Name” field, then click the “Type” drop-down and select “Basic.” Click “Save.” A green “Tax Profile Created Successfully” message will appear, and you will be taken to the Tax Profiles Edit screen as shown below.
 

 

Method Priority

Tax Method Priority is evaluated on the order listed in the screen below. Change the order by clicking the drag icon and dragging up or down as shown.

 

 

An example of a use for this area would be if you had “State or Province” listed first followed by “Country.” Pressero will evaluate the buyer’s State or Province first and if they are not in a state that you have listed to include tax for, it would then look at the country and apply a tax if the country made a match. 

Include Shipping / Include Handling

Check these boxes if you want the tax to be based on the order subtotal PLUS shipping and/or handling charges. Leave boxes unchecked if you want the tax to be based on the subtotal of the order. In each section you will be able to override this setting. This is available (for example) if you want to apply tax to shipping and handling for all situations except for one postal code, or state. 

Shipping Tax Calculated From

You have the choice to calculate the shipping tax from the Shipping Address or the Billing Address. Select the appropriate location in the “Shipping Tax Calculated From” drop-down.

Test Button (Test Tax Calculation)

Use the Test Tax Calculation area after you have set up your various tax settings. Click the “Test” button at the bottom of the screen to initiate this. You can then enter test scenarios and make sure that you are getting the results that you expect. 

 

Setting Postal, State or Province, or Country Taxes

Postal

To set tax rates for postal codes, click the green plus sign (+) in the Postal Codes section of the Tax Profiles Edit page.

 

 

In the Edit Postal Code screen, enter the following:
  • Postal Code - Enter the Postal Code in the “Postal Code” field.
  • Tax Name - Enter a name for this entry in the “Tax Name” field.
  • Shipping Tax Rate Override - This field is used if shipping or handling is included. Set the Tax Rate for the shipping amount (%) or leave blank to use the same value from the Tax Rate.
  • Rate - Enter the Tax Rate for this specific postal code in this field. Make sure to enter in percentage values. Example: a tax of seven and a quarter cents on the dollar should be entered as 7.25.
  • Save – Click the Save button to save this entry and return to the Tax Profile Edit page.
  • Repeat the above steps for all postal codes that are required to be defined.
In the Postal Code List area: 
  • Use only if previous tax priority is zero - In each of the options you can click this checkbox if you only want that area's rates to be considered if the previous one is zero. This works with the Tax Method Priorities that you set up at the top of the page. If you do not check this box, the customer may receive double or triple tax rates if they match more than one tax area set up.

 

State or Province

In the Edit State or Province screen, enter the following:

  • State or Province - Enter the State or Province in the “State or Province” field.
  • Tax Name - Enter a name for this entry in the “Tax Name” field.
  • Shipping Tax Rate Override - This field is used if shipping or handling is included. Set the Tax Rate for the shipping amount (%) or leave blank to use the same value from the Tax Rate.
  • Rate - enter the Tax Rate for this specific State or Province in this field. Make sure to enter in percentage values. Example: a tax of seven and a quarter cents on the dollar should be entered as 7.25.
  • Save – Click the Save button to add the rate to the Rate List and return to the Tax Profile Edit page.
  • Repeat the above steps for all States or Provinces that are required to be defined.

In the State or Province List area: 

  • Use only if previous tax priority is zero - in each of the options you can click this checkbox if you only want that area's rates to be considered if the previous one is zero. This works with the Tax Method Priorities that you set up at the top of the page. If you do not check this box, the customer may receive double or triple tax rates if they match more than one tax area set up.

 

Country

In the Edit Country screen, enter the following:

  • Country - Enter the Country in the “Country” field.
  • Tax Name - Enter a name for this entry in the “Tax Name” field.
  • Shipping Tax Rate Override - This field is used if shipping or handling is included. Set the Tax Rate for the shipping amount (%) or leave blank to use the same value from the Tax Rate.
  • Rate - Enter the Tax Rate for this specific Country in this field. Make sure to enter in percentage values. Example: a tax of seven and a quarter cents on the dollar should be entered as 7.25.
  • Save – Click the Save button to add the rate to the Rate List and return to the Tax Profile Edit page.
  • Repeat the above steps for all Countries required to be defined.

In the Country List area: 

  • Use only if previous tax priority is zero - In each of the options you can click this checkbox if you only want that area's rates to be considered if the previous one is zero. This works with the Tax Method Priorities that you set up at the top of the page. If you do not check this box, the customer may receive double or triple tax rates if they match more than one tax area set up.

Flat Tax Rate

If you would like to set up a flat rate for all customers, do that here. 

  • Flat Tax Rate - Enter the Flat Tax Rate. Make sure to enter in percentage values. Example: a tax of seven and a quarter cents on the dollar should be entered as 7.25.
  • Use only if previous tax priority is zero - In each of the options you can click this checkbox if you only want that area's rates to be considered if the previous one is zero. This works with the Tax Method Priorities that you set up at the top of the page. If you do not check this box, the customer may receive double or triple tax rates if they match more than one tax area set up.
  • Click the Save button at the bottom of the page to save your changes. 

 

Assigning a Tax Profile to a Site (Choose Tax Profile)

To assign a Tax Profile to a site, go to Site > Settings > General and scroll to Tax. Click the “Choose Tax Profile” down-down and select the Tax Profile that you want to assign to this site.

Click the “Save” button. 

 

Enable Tax ID? - Click the Enable Tax ID check box to provide a Tax ID for your site. If you provide a Tax ID, your customers will not be prompted to enter a Tax ID when ordering.   

Tax ID - This field allows you to provide a default Tax ID for your site. If you enter a Tax ID here then your customers will not be prompted to enter one when ordering. 

 

Capture Tax ID - If checked, the user must provide their own Tax ID in their profile unless there is a Tax ID entered in the "Tax ID" field above. If your customer signed up before you added this requirement to your site the customer will be prompted in the store to update their user profile with their Tax ID unless you have entered a default one in the "Tax ID" field.

Prompt for Tax ID - Enter text to prompt your user for entry of the Tax ID on their site.

Tax ID Mask - Enter the mask format if you want user to enter the Tax ID in a particular format. Use "a" for alphanumeric and "#" for numbers. Example: "####-####-##" for "9999-9999-99" or "aaaa-aaaa-aa" for "123-abc-1234. 

 

Tips and Helpful Information

  • Pressero is integrated with Avalara Tax Service. You can set up individual sites to pull tax rates from your Avalara account. Please see this article for more information.
  • If you have a situation where you have hundreds of rates to add (as an example, in a situation where each postal code has a different rate in your area) you may use Professional Services to have our programming team upload a database file with the rates for you. In this situation, many customers will have us upload the rates to one site that they use as a template so that each new site can be duplicated from the first and the rates will already be entered into the new site. If you are interested in having us mass upload the rates for you, contact our support team by submitting a ticket. 
  • The Tax id field is for use by our European customers to capture their various flavors of VAT.
  • Taxes can be overridden at the product level. See Sites > [Select Site] > Catalog > Products > Edit > General (tab) > Tax (Chapter 049 Products (General Tab).
  • You can use an asterisk * wildcard for the postal code, so the user. Example: you can add a value like 60187, where the application will search for a postal code that matches 60187 or can use 60* and it will search for all rules where the postal codes starts with 60.

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