WC Vendors Tax Setup Guide

Notice:

This is for version 2.0 of our Stripe Connect & Gateway plugin.

This is the documentation for WC Vendors Tax plugin.

With this extension, your marketplace can calculate sales tax automatically at the checkout by integrating TaxJar or Avalara tax calculation service into your marketplace.

Features

  • Calculating sales tax automatically using cloud tax calculation services like TaxJar or Avatax.
  • Uploading orders and refunds to cloud tax services for reporting and filing.
  • Switching between marketplace and vendor as the seller of record.
  • Support both WC Vendors Marketplace and WC Vendors Pro.
  • Support TaxJar Nexus addresses.
  • Cache calculation result to save API calls.

Requirements

  • WordPress 5.2 or above
  • WooCommerce 3.6 or above
  • WC Vendors Marketplace 2.1 or above
  • WooCommerce configured as per the instructions below

WooCommerce settings

  • Remove all predefined tax rules in WooCommerce > Settings > Tax.
  • All product prices must be tax-excluded.

Installation

  1. In WordPress, go to Plugins > Add New > Upload
  2. Click Choose File and find your downloaded ZIP file
  3. Activate the extension through the ‘Plugins’ menu in WordPress
  4. Go to WC Vendors > Settings > Tax to configure the plugin

WordPress Admin Configuration

General

  • Enable vendor tax system: Enable/disable this extension.
  • Custom tax fields: Show tax field on WooCommerce registration form and Account setting page.
  • Seller of record: Set who is responsible for sales tax on the marketplace, default to vendor.
  • Active integration: this plugin requires setting up one of the available integrations before it can work for you. For now, TaxJar and Avalara are supported, more integration will be added in the future.
  • Enable logging: Log the activities of the plugin for debugging purposes. If enabled, the log can be accessed at WooCommerce > Status > Logs.

TaxJar settings

When TaxJar is active integration, a subtab for the TaxJar setting will be visible next to the General tab. Note that the tab is only visible after saving the current general setting.

  • TaxJar SmartCalcs API token: the API token provided by TaxJar. This is required for the plugin to work.
  • TaxJar Referral URL: You can earn commissions if vendors sign up for TaxJar through your referral link.
  • Sandbox mode: Whether to use a sandbox environment for testing purposes, only available for TaxJar plus plan. More about this here.

Avalara settings

To get Avarala working, you need to set the Account ID and License key. Company Code is required if your company code is other than DEFAULT.

Vendor Tax Settings

Common settings

  • Your tax ID: Business Tax ID to show on invoices.
  • Upload order: Upload order and refund to cloud tax services for reporting.
  • Disable Automatic Tax Calculation: if checked, the calculation will use the marketplace admin API credentials to calculate tax rates.

With TaxJar

  • TaxJar SmartCalcs API Token: This is required for uploading order and refund to TarJar.
  • Nexus Address: This plugin allows vendors to list all nexus addresses right from the dashboard to calculate US Sales tax correctly.

With Avalara

  • Account and License Key: Same as TaxJar, if the vendors check Upload order, we need Account ID and License Key set up to enable that feature.
  • Company code: Requires if the company code is not DEFAULT.

Get API Keys from Cloud Tax Services

Get TaxJar SmartCalc API Token

  1. Login to your TaxJar Account page.
  2. Click on SmartCalcs API on the left side of the screen.
  3. Click the button that says “Generate API Token”.
  4. Copy the token appeared.

Get Avalara Account ID and License Key

  1. Go to the Avalara login page.
  2. Login with your login credentials.
  3. Click on the “Avalara Avatax” box when the popup appears.
  4. Find your Account ID
    1. Hover on your name on the top right corner of the admin page.
    2. Copy the Account ID appears. (screenshot)
  5. Find your License key
    1. Check for your license key in an email from Avalara.
    2. If you can’t find the existing license key, go to Settings > License and API Keys from the admin page in step 2.
    3. Click Generate License Key.
      A warning displays. If this is your first time setting up AvaTax Update, you can ignore the warning.
    4. Click Yes, Generate a License Key.
      Avalara emails the license key and account information to account administrators. There is one license key for all systems associated with your account.
    5. Check your email to grab the license key.

Tax codes setting

To calculate tax correctly, you or your vendors need to update tax code for all existing products.

Update tax code for TaxJar

  1. Go to the product edit page.
  2. Scroll down and find “Product Tax category” select box.
  3. Choose a product category that matches with the current product.
  4. Save changes.

Update tax code for Avalara

  1. Go to the product edit page.
  2. Scroll down and find “Product Tax category” setting.
  3. Click on the “Look up Avalara tax code” link in the description of that setting.
  4. On the Tax code Look up page, search for the code that matches your product and copies it.
  5. Paste the code found in step 4 to the input.
  6. Save changes.

Conclusion

That’s it! You’re done configuring the WC Vendors Tax! From now, your marketplace will calculate tax automatically for you.

Please Note

If you have any issues with your TaxJar or Avalara account please contact them directly. We cannot assist you with configuring those accounts.

Updated on March 9, 2020

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