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Tax in the B2B

Last updated 07/04/2021

Overview

How taxes are applied in a B2B online store.

The B2B online store applies tax to a product, based on the following hierarchy. If no tax exists at one level, the store looks for a tax at the next level: 

  1. Tax at Price Tier level
  2. Tax at Product level 
  3. Alternative tax at CRM level
  4. GL account tax at CRM level
  5. Alternative tax at Branch level
  6. GL account Tax  at Branch Level
  7. Default tax rate

Tax at Price Tier level

  • If a price tier is tax-exempt, it will not calculate or apply a tax.
  • If a price tier is tax inclusive, a tax will be calculated but will not be added to the final price charged to the user.
  • If a price tier is tax-exclusive, a tax will be calculated and added to the subtotal to calculate the final price.

Tax at Product Level

If the price tier is not exempt, Cin7 will check if a tax has been added at a product level and take that into account. A tax can be set at a product level by setting up a tax for a GL account and assigning that account to the product in the Sales Account dropdown.

Alternative Tax at CRM Level

If a price tier is not exempt and none of the products have a specific tax applied, Cin7 will check if a tax applies to a specific customer in the CRM at the Tax Status field and take that into account.

GL Account Tax at CRM Level

If a price tier is not exempt and none of the products have a specific tax applied and Tax Status field is blank, Cin7 will check if a tax applies to a specific customer in the CRM at the GL Account field and take that into account.

Alternative tax at Branch Level

If none of the above tax apply and if a price tier is not set to tax exempt, Cin7 will check if a tax applies to a specific branch at the Tax Status field level and take that into account.

GL Account Tax at Branch Level

If none of the above tax apply and if a price tier is not set to tax exempt,  Cin7 will check if a tax applies to a specific branch in the CRM at the GL Account field level and take that into account.

 

Default Tax Rate

If none of the above apply, a default tax rate is applied to an order which is the GST for Australia and New Zealand based customers.