How to Set Up Tax Rates

This article will cover how to add tax rates to your RevolutionParts account!

IMPORTANT: You will need to verify your tax information with your dealership's Controller as RevolutionParts cannot provide tax advice.

There are a few ways to configure your taxes in RevolutionParts. For our customers in the United States, the first way is Marketplace Tax Comply, where RevolutionParts calculates, charges, and remits taxes for your selling channel(s) automatically based on our own tax nexus! For more information on Marketplace Tax Comply, click here.

There are two methods of tax calculation available to all customers: Manual and Automatic.

Tax rate can be determined by your tax nexus and the order's shipping location.

• Manual lets you define your tax rates yourself for each city and/or state/province where you need to charge and remit sales tax.
• Automatic uses a third-party provider to calculate tax rates for you on a per-order basis—you will only be responsible for adding a tax location for all city and/or state/province where you plan to charge and remit sales tax.

For Canadian customers, we fully support non-integer postal codes at the account level and within the shopping experience.

To set up your tax rates using Manual calculation

1. Log in to your account at manage.revolutionparts.com.
2. Click the gear icon in the top right-hand corner of the navigation bar to access your Settings.
   
3. In the left-side menu, click "Tax," then "Settings."
   
4. On this page, you'll be able to see any existing tax rates that may have been previously configured.
   NOTE: The Tax Provider field in this example is set to "Manual." To switch to Automatic, select it in the dropdown.
   
5. To add a new tax rate, click on the green "+ New Tax Location" button in the top-right corner of the page.
6. To configure your tax rate in the popup:
   1. First, choose the appropriate Country for this new tax location.
   2. Next, choose a State/Province from the drop-down menu.
   3. Optional: You can also add a City or Zip Code/Postal Code if you plan to charge and remit taxes for specific municipalities.
   4. Enter the appropriate tax rate for this location.
   5. Optional: You can change the name of the rate at the end, but it will auto-populate with the State/Province code and the tax rate by default.
   6. You also have the ability to choose whether or not core charges and shipping are taxable in the tax location.
   7. Once you're finished, click the "Add Tax Rate" button.
      
      IMPORTANT: If you specify a City, tax will only apply to orders shipped to that city. To charge tax in an entire state/province, only enter the State/Province, and leave the City field blank.
      
7. The page will change back to the "Tax Settings" page. Here, you can verify that your new tax rate is now visible.
   

That's it! Be aware that tax will only be charged on orders with a shipping address in the locations in which you have a warehouse and tax locations in which you have a tax rate configured.

To set up your tax rates using Automatic calculation

1. Log in to your account at manage.revolutionparts.com.
2. Click the gear icon in the top right-hand corner of the navigation bar to access your Settings.
3. 
4. In the left-side menu, click "Tax," then "Settings."
   
5. On this page, you'll be able to see any existing tax rates that may have been previously configured.
   NOTE: The Tax Provider field in this example is set to "Automatic Calculation." To switch to Manual, select it in the dropdown.
   
6. To add a new tax rate, click on the green "+ New Tax Location" button in the top-right corner of the page.
7. To configure your tax rate in the popup:
   1. First, choose the appropriate Country for this new tax location.
   2. Next, choose a State/Province from the drop-down menu.
   3. Optional: You can also add a City or Zip Code/Postal Code if you plan to charge and remit taxes for specific municipalities.
   4. Optional: You can change the name of the rate at the end, but it will auto-populate with the State/Province code and the tax rate by default.
   5. You also have the ability to choose whether or not core charges are taxable in the tax location.
   6. Once you're finished, click the "Add Tax Rate" button.
8. The page will change back to the "Tax Rates" page. Here, you can verify that your new tax rate is now visible.

Setting up Canadian Tax Locations

Manual Tax Calculation in Canada

For our Canadian customers, some provinces may require a combined tax rate even if they have separate federal and provincial tax rates. This is the only way to guarantee that the appropriate tax rate is charged for customers in that province.

If you're planning to charge and remit taxes in a province that has provincial sales tax, you'll need to add the combined rate into your tax location since the two rates cannot be separated (Example: Quebec = 14.975%).

Automatic Tax Calculation in Canada

The benefits of using automatic tax calculation instead of manual calculation include:

1. Our system will properly display the tax rate in both English and French, along with the associated tax rate.

   • Example: GST/TPS 5% or QST/TVQ 9.975%

2. For provinces with QST or PST, the two tax rates are split across all of our applications.
   

Your tax locations should be set up as follows:

1. All Provinces (GST) - This tax location will support charging the federal rate on any provinces that do not have a tax location on the account. You can add your federal Business Number to this tax location.

2. Individual Provinces - This tax location will support the appropriate tax rate(s) for the selected province. You can add your Business Number to this tax location if a separate account is available based on your province.