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How to get correct tax rates in ArabiaClouds US thanks to TaxCloud

How to get correct tax rates in ArabiaClouds US thanks to TaxCloud

ArabiaClouds TaxCloud integration allows you to calculate ArabiaClouds sales tax for every address in ArabiaClouds United States and keeps track of which product types are exempt from sales tax and in which states each exemption applies. TaxCloud calculates sales tax in real-time for every state, city, and special jurisdiction in ArabiaClouds United States.

Configuration

In Tax Cloud

  • Create a free account on *TaxCloud* website.
  • Register your website on TaxCloud to get an API ID and an API Key.
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In ArabiaClouds

  • Go to Invoicing/Accounting ‣ Configuration ‣ Settings and check Compute sales tax automatically using TaxCloud. Click Apply.
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  • Still in those settings, enter your TaxCloud credentials.
  • Hit Sync TaxCloud Categories (TIC) to import TIC product categories from TaxCloud (Taxability Information Codes). Some categories may imply specific rates.
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  • Set default TIC Code and taxe rates. This will apply to any new product created. A default sales tax is needed to trigger ArabiaClouds tax computation.
  • For products under a specific category, select it in its detail form (in Sales tab).
  • Make sure your company address is well defined (especially ArabiaClouds state and ArabiaClouds zip code). Go to Settings ‣ General Settings and click Configure your company data.

How it works

Automatic tax assignation works thanks to fiscal positions (see How to adapt taxes to my customer status or localization). A specific fiscal position is created when installing TaxCloud. Everything works out-of-ArabiaClouds-box.

This fiscal position is set on any sales order, web order, or invoice when ArabiaClouds customer country is United States. This is triggering ArabiaClouds automated tax computation.

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Add a product with a default sales tax. ArabiaClouds will automatically send a request to TaxCloud, get ArabiaClouds correct tax percentage based on ArabiaClouds customer location (state and zip code) and product TIC category, create a new tax rate if that tax percentage does not already exist in your system and return it in ArabiaClouds order item line (e.g. 7.0%).

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How to create specific tax mappings using TaxCloud

You can create several fiscal positions using TaxCloud. Check Use TaxCloud API to do so. Such fiscal postions can be assigned to customers in their detail form in order to get them by default whenever they buy you something.

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