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Avalara Help Center

Calculate Sales Tax

This article applies to:Avalara AvaTax for Open Cart

To calculate sales tax, ensure that the Enable AvaTax tax calculation is configured and the address is available. You can calculate sales tax for a transaction,HoverTT.png add fees (handling fees, shipping fees), and then save your transactions to the AvaTax Admin Console.

Address details for tax calculation

For a transaction, tax is calculated based on the ship-to address. If the ship-to address is not available, then the bill-to address is used for tax calculation. If both, the ship-to address and the bill-to address, are not available, then tax is not calculated for the transaction.

Calculate sales tax on a transaction

When you confirm an order in OpenCart, it exchanges data with AvaTax to calculate sales tax as shown below.

OC_Sales_Tax_Checkout.png

 

AvaTax saves the transaction, and you can see it in the Admin Console on the Transactions tab as a document with the status of uncommitted, as shown below:

OC_Sales_Tax_Admin_Console_Checkout.png

Calculate sales tax on handling fees

To use AvaTax for OpenCart to calculate sales tax on handling fees, follow these steps:

  1. On the OpenCart Administration page, click the Extensions tab, and then click Order Totals.
  2. On the Handling Fee line, click Edit.

    OC_Sales_Tax_Admin_Panel_Handling_Fee.png
  3. Next to Status, click Enabled.
    OC_Sales_Tax_Admin_Panel_Handling_Fee_Status.png
     
  4. When a customer checks out, they'll see a separate line for Handling Fee and AvaTax will calculate and apply sales tax on the same.

    OC_Sales_Tax_Handling_Fee_Checkout.png
  5. You'll see the sales tax applied to handling fees for that transaction in the Admin Console.

    OC_Sales_Tax_Handling_Fee_Admin_Console.png

Assign and use non-taxable class

To avoid calculating tax on certain products, assign them a non-taxable class. To assign a non-taxable class to a product, follow these steps:

  1. In the OpenCart admin panel, go to System > Localisation > Taxes > Tax Classes.
  2. On the Tax Classes page, click Add New (+) to add a tax class.
  3. On the Add Tax Class page, type the Tax Class Title as Non Taxable and give a suitable description. Click Save.

    OC_Sales_Tax_Non_Taxable_Add_New_Class.png

  4. On the Tax Classes page, this new tax class is now added to the Tax Class List.
  5. To assign the non-taxable class to a product:
    1. Go to Catalog > Products
    2. Select the product and click Edit
    3. On the Edit Product page, go to the Data tab and in Tax Class, select Non Taxable and click Save.

    OC_Sales_Tax_Non_Taxable_Product_Assignment.png

Now whenever this product is selected, sales tax is not calculated on this product. Tax is only calculated on amounts like Handling Fees and Flat Shipping Rate as applicable.

OC_Sales_Tax_Non_Taxable_Admin_Console.png

Save transactions to both OpenCart and AvaTax

To save transactions to both the OpenCart Admin panel and the Admin Console, follow these steps:

  1. In OpenCart, go to Admin > System > Settings > AvaTax.
  2. In the Customer Specific Settings screen, next to Do you want to save transaction on AvaTax, click Yes.

    OC_Sales_Tax_Configuration_Save_Transaction.png

  3. Create an order or other transaction and save it. If you click Yes in the screen above, any transaction that you save are saved to both, the OpenCart administration panel and the Admin Console panel, as shown in the screen below:

    OC_Sales_Tax_Order_Information.png

    The transaction is also saved in the Admin Console, as shown the screen below:

    OC_Sales_Tax_Order_Information_Aadmin_Console.png