Tax Codes not Pulling in Based on Shipping Address (US)

Hello,

I am working on setting up taxes for a company that has Nexus and files in multiple US states. The home state is PA. First off, should I be leaving the tax item empty on the customer record if I want to pull the cade code in based on the shipping address? It seems any code set at the customer level overrides what would be pulling in for the shipping state.

When I make sure the tax item at the customer record level is blank, it appears to only pull in my tax codes correctly for PA and not for out of state shipping addresses. I tried to remediate this by setting those states to their overall state code, but it is still not working. I tested it with a taxable customer in NJ.  See set-up page settings in image attached.

What am I missing here and how can I ensure the tax codes are pulling based on shipping address for out of state? Anything out of state defaults to not taxable even when the customer is set to taxable = Y and tax item = blank

Tax Codes not Pulling in Based on Shipping Address (US)

Rookie Asked on March 18, 2023 in Taxation.
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1 Answer(s)

Issues Solved via the below:

Ensure the following are checked under “Set Up Taxes”
– Tax Lookup on Sales Transactions
– Charge our of District Sales Taxes
Also under Set Up taxes
– Ensure Default Tax Code = PA
– Home Tax codes for all states are blank (originally was set to “-not taxable-” which was part of the problem)
Remove “taxable” as the tax item for all customers. The tax item should ALWAYS be blank so it auto fills. Accounting should only toggle the “taxable” check box on a customer record
Ensured nexuses were setup correctly under Setup> Taxes> Nexus (they were)
Ensure All Subsidiaries are set-up with the appropriate Nexuses. Company was only set up for PA which is why PA was working only during testing after getting the settings correct and removing customer tax items.
Reviewed Tax Schedule “taxable” set-up. Two States were set-to no. Updated this to “yes” for taxable and tested. Taxes seems to be applying appropriately
Rookie Answered on March 20, 2023.
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