Set up zones for applying us tax rates

For countries like the USA where tax can be different between different zip codes in the same state, you can create zones in StoreConnect that are made up of zip codes that share the same tax rate.

This involves a bit of work and manual labor with spreadsheets, but is worth it for easier management in future.

For (non-US specific) information about managing tax and shipping zones, see Configure tax and shipping zones.

Recommendation: use a data management tool

Parts of this procedure involve importing values for lookup lists. We recommend using a data manager like dataloader.io to manage complex export and imports.

Add us tax information to StoreConnect

Add zip codes to StoreConnect

All relevant zip codes need a Postcode record in StoreConnect.

1. Create a spreadsheet with all US ZIP codes.
2. Follow this format for column headings:
   • Country
   • ZIP code
   • Tax rate
3. Import the data from this spreadsheet to create Postcode (zip code) records in StoreConnect.
   1. In the App Launcher, search for Postcodes.
   2. In the Postcodes screen, select Import.
   3. Select --None– in the Match by and Record owners fields.
   4. Select Country name.
   5. Upload the file and complete the import process.

Add zones

Zones need to exist in StoreConnect so that they can be associated with tax rates. You’ll create one zone per tax rate.

1. Duplicate the spreadsheet you created above.
2. Remove all duplicate tax rates so there is only one row per unique tax rate.
3. Add a Zone column and name the zones according to the Tax rate value, so that the name of the Zone is the same as the Tax rate. This will make it easier to identify later.
4. Import the file.

Add tax rates

You can do this manually, or by updating the existing spreadsheet columns and values.

1. Open the taxes list in StoreConnect.
2. Select New.
3. Enter the following details:
   1. A Name for the tax rate. This might identify the zone.
   2. A Display Name, such as Sales tax. This is what the customer will see, say, on a receipt.
   3. The Tax Rate, expressed as a percentage.
   4. Effective From - the date this rate applies from)
   5. Effective to can be left blank.
4. Select the Zone from the list of ones you already created.

Add zones with associated postal zip codes

Now that tax rates and zip codes exist, we can link multiple zip codes to a zone.

1. Update your spreadsheet in preparation for import by combining the success logs from the Zone upload and the Postcode upload to get all the data you need into one sheet.
2. Add a Zone Postcode column.
3. Review the Zone and Postcode column values - these make up the Zone Postcode record.
4. Go to Zone Postcodes in StoreConnect and select Import, or use a data upload tool of your choice to if you need to build relationships without knowing Salesforce record IDs. Dataloader.io is one option.
5. Import the spreadsheet.

Product tax configuration

1. Create a Tax Group record and name it USA.
2. Create a Tax Tax Group record for each tax record that you created earlier, to link each tax to the tax group.
3. For every product, create a Product Tax Group record, pointing to the tax group you created. These products are now subject to sales tax for all the zip codes and the rate charged based on the tax record associated to the shipping zone (zip code) for the customer.

Manage changing tax rates

When you update a tax rate in future, the change will apply to all postcodes assigned to the linked zone.

If a tax rate changes for only some postcodes, you can remove those zone postcode records and re-associate with the zones for the new tax rates.