We have found that in most cases, electronically delivered products are not taxable. If you are sending a customer something physical after their purchase, it may be taxable. All Instant SOLO Authors should contact their state/country tax department to determine the taxation rules for Internet-based transactions. You should enter the sales tax rules for your state/country into your Instant SOLO Store. You will be responsible for reporting this tax to the appropriate agency.
SOLO offers two tax calculation methods which can be used during the checkout process:
Tax Rules - Individual tax rules configured either globally, or by country, by US state, or by Canadian province. This is the only option for non European Union authors.
European Union VAT - European Union VAT rules. This option is only available to European Union authors, and requires using the .NET shopping cart. When this method is selected:
During checkout the customer will be prompted to supply a VAT number if they are from a European Union country outside of the author country.
If the VAT number is supplied and validated against the EU VAT database, no VAT is charged.
If the VAT number is not supplied or cannot be validated VAT is charged.
Customers from the country of the author are always charged VAT.
Non EU customers are charged no VAT.
The tax calculation method can be selected through the Cart Options.
Regardless of which option is selected, individual tax rule(s) need to be defined for the tax rates. To configure these rules from the authors menu choose Storefront, Sales Tax Rules. This will display a list of current tax rules, with the ability to add new rules, and edit and delete existing rules. See Sales Tax Field List for more information.