Volusion Automatic Tax Feature

Merchants who are based in the United States can now take advantage of our automatic tax integration. Our automatic tax system takes the guesswork out of tax rates by automatically accessing the most up-to-date information for each state.

Adding an Automatic Tax Rate

By default, all new US-based stores are configured to use automatic rates. To add or update the tax rates configured:

  1. Go to Settings > Tax in the Admin Area.
  2. If you only charge a single tax and the rate looks correct, click Yes, Looks Good.
  3. If you want to change the tax rate for your store, click No, I’ll add a new rate and select your state.
  4. Note that some states are origin states and some are destination states. For further explanation, see Note About Origin and Destination States.
    • If your store is based in an origin state, be sure to enter the required zip code.
    • For destination states, you only need to make a selection from the State menu.
  5. Be sure that the Enabled check box is selected, then click Add.

To create automatic tax rates for any additional states, click Add at the top of the page and make a selection from the State menu.

Switching to Automatic Tax Rates

Existing merchants can now take advantage of this powerful integration by switching from manually configured tax rates. To use automatic rates:

  1. Go to Settings > Tax in the Admin Area.
  2. Click Settings at the top of the page.
  3. Select the radio button for Use Automatic Rates.
  4. Click Save.

To configure new automatic tax rates, click Add at the top of the page and repeat steps 5 and 6 from the Adding an Automatic Tax Rate section above.

Note About Origin and Destination States

The calculation of sales tax in your state will either be origin-based or destination-based. Origin states charge tax based on the location of your business, whereas destination states charge tax based on an order's destination, or shipping address. 

Note About Tax Calculation

Volusion's automated tax feature will charge customers based on their state and zip code.

Other Tax Settings

Customizing Automatic Tax Display on Your Storefront

Tax Level Display

By default, your customers will see tax displayed as a single, combined rate at checkout. You may want to display all available tax levels to your customers in an itemized fashion. To enable an itemized display of taxes at checkout, go to Settings > Config Variables and enable Display Tax Breakdown to Customer.

This will split out the tax rates on the Shopping Cart and One Page Checkout pages of your storefront.

This will also split out the tax rates in the order confirmation email that your store sends to the customer. Note that the individual tax rates will always display in the Details section of the Order Details page.

Tax Name Display

To change the text for the word “tax” on your storefront, go to Design > Site Content and select PageText from the Article Group menu. Scroll to PageText ID 734. Change the word "tax" here to update how it appears on your storefront. Note that this PageText controls the label for the combined tax as well as the label for the individual tax rates (if Display Tax Breakdown to Customer is enabled).

Tax on Shipping

In order to designate whether or not your store collects tax on shipping, go to Tax > Settings and click Settings at the top of the page. Choose your preference from the Tax on Shipping menu, then click Save.

Using Manual Tax Rates

Merchants can also switch to or continue using manually configured tax rates. For further instructions on setting up manual rates, see our article on Tax.

Watch the Tax video series