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Need to not charge taxes on non-shippable items

Posted: Fri Jul 02, 2010 12:30 pm
by mfreeze
My client has tax rules set up that are all based on shipping address. They have digital goods that are notshippable so no shipping address is defined. It appears that if no shipping address exists, the taxes are being based upon the billing address.

How do we make the system not charge taxes if the shipping address is blank or if an item or variation is nonshippable?

Re: Need to not charge taxes on non-shippable items

Posted: Fri Jul 02, 2010 12:46 pm
by Shopping Cart Admin
Hello Mary,

Shouldn't they just be set to non-taxable items?

Re: Need to not charge taxes on non-shippable items

Posted: Fri Jul 02, 2010 1:26 pm
by mfreeze
The products that are downloads can be set up that way but what about the variations? Some are products that have variations like CD, Cassette or Download where only the Download should not be taxed.

Re: Need to not charge taxes on non-shippable items

Posted: Sun Jul 04, 2010 10:17 am
by AbleMods
mfreeze wrote:The products that are downloads can be set up that way but what about the variations?
You can't. Able doesn't support taxable status on specific variants.

All variants pull the taxable status from the main product record. So it's all-or-nothing when it comes to taxing variants. The only option is to make the odd-balls (taxables or not taxables) as separate products in the catalog.

You -might- be able to modify checkout such that you loop through the basket items and turn the taxable flag off for the digital download basket items. The taxable flag and amount are stored in the basket item class. However manipulating the basket contents on the checkout page is tricky at best.

I've never heard of a taxing authority that permitted digital downloads as exempt from tax. In Indiana, digital goods are still tangible goods and thus subject to sales tax.

Re: Need to not charge taxes on non-shippable items

Posted: Tue Jul 06, 2010 5:11 pm
by mfreeze
FYI. I found an article that says that only 15 states charge taxes on digital goods, Indiana is one of them. Florida, where my client is located does not, at least not yet.

Re: Need to not charge taxes on non-shippable items

Posted: Thu Jul 28, 2011 7:00 am
by ImmortalLogic
AbleMods wrote: You can't. Able doesn't support taxable status on specific variants.
I am a bit confused and I was hoping someone could clarify. We have a situation when we sell a shippable item such as a CD order only, it should be taxable. However, when the CD is ordered with a down-loadable (non-shippable) item, we do not want to charge tax for the CD. From this discussion, it looks like it is not possible to have an item as taxable for certain situations and not taxable for other situation?

It also appears that it might be possible to remove taxes for the CD item when it encounters the digital item in the basket? Though not an option, it might be possible to do this programmatically?

AbleMods wrote: The only option is to make the odd-balls (taxables or not taxables) as separate products in the catalog."
Does this mean I would need to have two separate entries for the same product: one set as taxable and the other set a non-taxable?

Thanks.

Re: Need to not charge taxes on non-shippable items

Posted: Thu Jul 28, 2011 7:14 am
by ImmortalLogic
AbleMods

Sorry, I just saw your other response in the other thread.

Thanks for your reply