How tax calculation works

Our tax calculation software integrates with TaxJar, a third-party vendor that captures all nuances of tax law across the country. These are the parameters we sent to TaxJar:

  • From address: the store location defined in the sales order

  • To address: when delivery method is delivery or direct to customer, the customer address will be used. When hold for pick up or immediate fulfillment is used, the store location will be used.

  • Items: the sales order items from the sales order items, grouped by the same from and to addresses. For each item we specify unit price, quantity and tax category.

Tax categories

A product or service inside Pistachio must be associated to a tax category. The default tax category is "tangible goods", which is full taxable in the majority of the cases. The tax categories are:

  • Bedding: Bedclothes items including sheets, pillow cases, bedspreads, comforters, blankets, throws, duvet covers, pillow shams, bed skirts, mattress pad, mattress toppers, and pillows.

  • Dry Cleaning: A charge to a non-commercial customer for the cleaning or renovating items other than clothing by immersion and agitation, spraying, vaporization, or immersion only, in a volatile, commercially moisture-free solvent or by the use of a volatile or inflammable product. This does not include the use of a self-service coin (or credit card) operated cleaning machine.

  • Furniture Reupholstering: A separately stated labor charge to cover a piece of furniture previously owned by the customer with new fabric coverings. Any materials transferred as part of the service are separately stated.

  • General - Services: Miscellaneous services. Choose this product tax code for any service offering in which a more detailed code is not available. This category will only treat services as taxable if the jurisdiction taxes services generally.

  • Gift Cards: Gift Cards

  • Interior Decorating: This is a labor charge for: the planning and design of interior spaces; preparation of layout drawings, schedules, and specifications pertaining to the planning and design of interior spaces; furniture arranging; design and planning of furniture, fixtures, and cabinetry; staging; lighting and sound design; and the selection, purchase, and arrangement of surface coverings, draperies, furniture, and other decorations.

  • Repair Services: A charge to repair or restore tangible personal property that was broken, worn, damaged, defective, or malfunctioning. This a labor charge, with any non-separately stated property transferred in performing the service considered inconsequential.

  • Restocking Fees: A separately stated charge for a return or cancellation of merchandise where the entire original sales price is refunded or credited to the customer. The restocking fee is normally charged to compensate the seller for costs related to returning the merchandise to the seller's inventory

  • Shipping: A shipping charge for the delivery of physical goods in conjunction with the sale of these goods. This tax category is not appropriate for stand alone transportation charges that are not associated with the sale of the goods being delivered.

  • Tangible goods: A physical good that can be moved or touched. Also known as tangible personal property.

  • Taxable Service: A service that is not excepted from sales tax

  • Warranty - Mandatory: A charge separately stated from the sale of the product itself that entitles the purchaser to future repair and labor services to return the defective item of tangible personal property to its original state. The warranty contract is mandatory and is required to be purchased on conjunction with the purchased tangible personal property. Motor vehicle warranties are excluded.

  • Warranty - Optional: A charge separately stated from the sale of the product itself that entitles the purchaser to future repair and labor services to return the defective item of tangible personal property to its original state. The warranty contract is optional to the purchaser. Motor vehicle warranties are excluded.

FAQ

  • My state has a temporary tax relief, what do I need to do? Our third-party partner TaxJar will adjust the tax calculation accordingly.

  • I believe a sales order had wrong tax, what do I need to do? Contact support, we are happy to troubleshoot and clarify an questions