How to set up taxes easily with LogiCommerce

Setting up taxes in an online store can be a complicated process, especially when you sell in several countries with different tax regulations. LogiCommerce makes this task simple and accurate, adapting to the regulations of each country or region and avoiding possible errors that can lead to fines.

Here's how LogiCommerce makes tax configuration easier.

Why is it complicated to set up taxes in eCommerce?

Online stores operating internationally face the challenge of complying with various tax regulations. Each country, and even each region, may have different tax rates, and for some specific territories, such as the Canary Islands or Ceuta and Melilla in Spain, there are additional tax rules.

In addition, in the United States, taxes are defined at the state level, and in some cases, even by zip code, which makes setup a real challenge for businesses.

Basic tax setup with LogiCommerce

Access to configuration

From the LogiCommerce BackOffice, you can access the tax configuration section. Here you can centrally manage all the taxes that will be applied in each country. LogiCommerce allows you to name and customize each tax according to your needs for precise control.

Definition of multiple VAT rates

LogiCommerce makes it easy to define the different VAT rates applicable in each country: general, reduced, super-reduced or exempt. This customization ensures that customers pay the appropriate VAT, simplifying tax administration for the sales team.

Single window for the European Union

You can define in which countries you want to apply specific tax rates. With a simple selection process, LogiCommerce allows you to assign the corresponding VAT rates to each country. This is especially useful if you are in Europe and need to comply with the One Stop Shop regulations for EU countries, which require you to apply the VAT of the destination country.

Tax exception management

LogiCommerce allows you to define exceptions for specific regions that have their own tax rates, such as the Canary Islands, Ceuta or Melilla in Spain. It is also useful in countries such as France, where certain areas may have different VAT rates. With this functionality, you can assign a different rate for each exception, ensuring that local regulations are met in each territory.

Setting up tax offices

Create multiple locations

A powerful feature of LogiCommerce is its ability to manage multiple tax locations. This is useful if your company has a presence in different countries and requires invoicing from different locations. You can create a US location, for example, to invoice in US dollars and apply US tax rates. This ensures that invoicing is accurate and compliant for each region.

Customization for each location

For each tax location, you can define the address, time zone, date format, currency and other details relevant to that specific location. This configuration ensures that customers receive documents in the correct format for their country, avoiding confusion in tax reporting and ensuring that documentation complies with local standards.

Country definition for invoicing from each location

LogiCommerce allows you to specify the countries to which each location is authorized to invoice. For example, you can set up one location in Spain to bill all of Europe and another in the United States to bill customers in America. This flexibility in site configuration ensures that there is no overlap in billing areas and facilitates compliance with specific regulations.

Integration with local tax solutions

In countries with complex tax systems, such as the United States, where rates vary between states and even at the local level, LogiCommerce integrates with specialized tools such as Avalara and TaxJar.

These automatic tax calculation solutions allow the platform to determine the customer's exact location and apply the correct rates based on their address.

This reduces errors and simplifies the process, allowing you to comply with complex local regulations without additional effort.

Benefits of using an end-to-end solution in LogiCommerce

Unlike some platforms that rely on external plug-ins to calculate taxes, LogiCommerce offers a fully integrated tax setup. This means less likelihood of errors or compatibility issues, centralized tax administration and a more secure system.

Because it is all within the platform, there is no need to adjust or update plug-ins, ensuring that the tax management of your online store is as efficient as possible.

Ultimately, tax management in an online store is one of the most critical and often most complex aspects of e-commerce. LogiCommerce has developed a system that allows you to set up rates and exceptions quickly, complying with international regulations and adapting to local markets.