Tax Settings

Configure how taxes are calculated and applied to your orders. TimberCloud supports both manual tax configuration and automatic tax calculation through Stripe Tax.

Navigation: Settings → Orders → Taxes

Tax Provider Selection

Choose how tax calculations are handled for your orders.

Manual Tax Configuration (Default)

Set up tax rates and rules manually with full control over your tax configuration.

Stripe Tax (Recommended)

Automatic tax calculation using Stripe's global tax engine.

Manual Tax Configuration

When using manual tax configuration, you define your own tax rates.

Creating Tax Rates

Example Tax Rates

Managing Multiple Jurisdictions

Add multiple tax rates for different regions:

1. Click Add Tax Rate
2. Select the country
3. Enter the jurisdiction name
4. Set the tax percentage
5. Configure shipping tax inclusion
6. Repeat for each jurisdiction you sell to

Important: You're responsible for ensuring tax rates are accurate and up-to-date with current tax laws.

Stripe Tax Configuration

When Stripe Tax is enabled, taxes are calculated automatically based on:

• Customer's shipping address
• Product type and tax category
• Current tax rates in the jurisdiction
• Your business registration locations

Requirements

• Active Stripe account connected to TimberCloud
• Stripe Tax enabled in your Stripe dashboard
• Business address(es) registered in Stripe

Product Tax Categories

Stripe Tax uses product categories to apply correct rates:

Tax Registration

Stripe Tax tracks where you have tax obligations:

1. Register for tax collection in jurisdictions where required
2. Stripe automatically applies correct rates
3. Access tax reports for filing

Benefits of Stripe Tax

• Automatic Rate Updates: Rates update when tax laws change
• Multi-jurisdiction Support: Handle taxes across states and countries
• Compliance Reports: Generate reports for tax filing
• Economic Nexus Tracking: Track sales thresholds by state

Tax Exemptions

For tax-exempt customers:

1. Navigate to the customer's profile
2. Add their tax exemption certificate
3. Mark the customer as tax-exempt
4. Orders for this customer will exclude tax

Tax on Shipping

Configure whether shipping charges are taxable:

Note: Tax on shipping varies by jurisdiction. Check your local tax laws.

Best Practices

For Manual Configuration

1. Research Requirements: Understand where you have tax obligations
2. Stay Current: Update rates when tax laws change
3. Document Everything: Keep records of rate changes
4. Consider Shipping: Know which jurisdictions tax shipping

For Stripe Tax

1. Complete Registration: Register in Stripe for all applicable jurisdictions
2. Verify Addresses: Ensure customer addresses are accurate
3. Review Reports: Regularly check tax reports in Stripe
4. Set Product Categories: Apply correct tax categories to products

Troubleshooting

Tax Not Calculating

• Verify tax provider is properly configured
• Check that customer has a valid shipping address
• Ensure tax rates exist for the customer's jurisdiction

Wrong Tax Rate Applied

• Review the customer's shipping address
• Check jurisdiction-specific rate configuration
• Verify product tax category (for Stripe Tax)

Tax Exempt Customer Being Charged

• Confirm exemption certificate is on file
• Verify customer is marked as tax-exempt
• Check that exemption hasn't expired

Related Settings

• Order Settings - General order configuration
• Customers - Tax exemption management
• Stripe Integration - Payment processor setup