When do I need this module?
The standard sales tax calculation (without the Advanced Sales Tax option) will manage taxable and non-taxable items but allows only a single rate per sales tax jurisdiction. For example, you can not charge 8% tax on sodas and 4% on standard grocery items without this advanced option.
The Advanced Sales Tax module is needed in the following situations:
- Sales tax rates differ based on the product that is being sold. For example, groceries are taxed at 3% and other items are taxed at 6%. This applies only to multiple rates and does not apply to states that exempt some items from sales tax and tax other items.
- A customer is exempt of sales tax for a specific group of products. For example oil products may be exempt from sales tax for a specific group of customers. With the Advanced Sales Tax module the user can configure the oil products group as exempt. The user must manually mark the item as exempt if this feature is not installed.
- The user needs to collect sales tax from multiple tax jurisdictions (states) and the products exempted from sales tax differ from state to state. For example: Groceries are exempt from state A but are taxable in state B
or Clothing is exempt from state B but not in state B.