Tax Exemption with Tax Cloud

-- HikaShop version -- : 2.6.0
-- Joomla version -- : 3.4.8
-- PHP version -- : 5.4.27
-- Browser(s) name and version -- : Firefox 43.0.1
-- Error-message(debug-mod must be tuned on) -- : N/A

Hi,

I'd like to know how to apply tax exemption to certain users/companies of this Joomla site to be tax exempt. I'm using TaxCloud with automatic compliance. I don't see any settings on the TaxCloud side of things to change.

I did follow a guide for the HikaShop end of things to set up a tax exempt user group, but I think TaxCloud is interfering or overriding this. Any suggestions that can help me?

Thank you

Entity-based exemptions are supported by TaxCloud, provided the minimum data elements for our AddExemptionCertificate API are called. In most implementations, a link is displayed next to the Sales Tax line item (something like "Are you exempt?") that opens an exemptions certificate selection or creation form.

Once TaxCloud sees all data elements necessary to accept an exempt entity claim, the data elements are securely archived, returning an exemption certificate identifier which can be used for all subsequent checkouts by that customer.

Among the greatest aspects and motivations of this work-flow, is that if all of the required elements are provided by the purchaser, our contracts with the states afford "reasonable reliance" on purchaser provided data - meaning that you as a retailer have no obligation to verify or inspect such exempt entity claims. This is very different from most retail environments. Usually the states hold the retailer liable for improper or incomplete exemption certificates. With TaxCloud, the states hold the purchaser liable, and specifically relieve our retailers from liability, because the states recognize that there is no feasible automated mechanism for an online retailer to verify if a customer thousands of miles away is truly "a school for the blind".

I would strongly discourage attempting to block/prevent transactions from going to TaxCloud if your purchaser is a wholesale client. Rather, simply instruct them to substantiate their wholesaler status by filling out the form once - from that point on, anytime they purchase from you, they can sim-oh select their existing exemption certificate, and you are not burdened with organizational tasks of verifying and maintaining their exemption claims.

Most importantly, with Automated Compliance turned on (most of our merchants use Automated Compliance), if any transactions are "filtered" or otherwise prevented from getting to TaxCloud, then our reports and returns will obviously be incomplete. Our Terms Of Service require true and complete transaction information from our merchants as a condition of continued service. Although our contracts with the states afford a lot of benefits (including audit risk avoidance and indemnification) for us and all of our merchants, our contracts also have "darker" set of negative covenants that eagerly and aggressively hold TaxCloud liable (including severe putative penalties) if we submit incomplete or inaccurate sales tax returns.

So, that's a very long way of saying... please do not filter transactions from getting to TaxCloud. Use our service and our APIs as designed.

Thanks!

I see. Thank you for the detailed description. I will begin seeing how to implement the solution you have put forth. I really appreciate it!

Hi,

I'm at a little bit of a loss. I've downloaded the XML file for TaxCloud. I'm not sure exactly how to import it into a development area. Also, where does the API key and ID go? Finally, how do I use the wsdl to make a link that goes on the checkout page in HikaShop?

In particular, I only need this: entity-based exemption certificates. I just need to know how to create this certificate and place a link to it on the checkout page in Hikashop. Any help you can offer will be greatly appreciated!

Hi,

Please review our Entity Exemption Certificates documentation and sample in our Developer Guide . I am not sure how helpful the sample code provided will be in a HikaShop environment, but it may get you started.

You can also take a look at other PHP implementations (for ZenCart and osCommerce ) in our GitHub repository .

Thank you.

Just checking-in, were you able to get this working?

Hi,

I actually did not look into it anymore. My client decided it was not that important to them in the end, so I didn't sink anymore hours into that. I appreciate you checking in!

Thanks

I had this come up yesterday with a new client & non-profit exceptions.

Currently my recommendation was to handle them outside of the card as otherwise correct the tax situation after an order has been placed with TaxCloud & Authorize.Net is not a easy task.

I've had other clients' doing wholesale/re-seller exemptions in other carts however.

So why it is rare, there is some interest in having some mechanism for this.