ZIP +4 Taxation

Sales tax vary widely among nations, not to mention, the special taxing jurisdictions being implemented in some areas. Since taxation rules changes from time to time and most areas do not follow tax rates using only ZIP codes, Connected Business has created the ZIP +4 Taxation. The ZIP +4 Taxation allows you to determine the most accurate tax rate and cater all applicable taxes to your transactions by having the ability to add multiple tax rates in the Postal Codes form.

Apply ZIP +4 Taxation

You can apply the ZIP +4 Taxation on a new or existing postal code in Connected Business.  To do this

  • Go to the System Manager module > Setup >Postal Code.
  • Click the New button and fill out the required fields for the postal code or select an existing postal code to view the postal code details.
  • Click on the Tax tab and enter the applicable rate for each tax type. (e.g. Plus4Low = 0, Plus4High = 10, State Sales Tax = 10%. etc)
  • Refer to the following table for the tax types.
                               
Field Description
Plus4Low The minimum range for the Plus 4 taxation. This should always be less than the Plus 4 High.
Plus4High The maximum range for the Plus 4 taxation. Note that Plus 4 low and Plus 4 High values should not overlap with other Zip+4 ranges.
State Sales TaxIndicates the sales tax for a given state.
County Sales TaxIndicates the sales tax to be collected for the specific county.
City Sales TaxIndicates the sales tax to be collected to a specific city.
MTA Sales TaxMetropolitan Transit Authority (MTA) Sales Tax is a sales tax applicable to business within MTA districts to be paid for MTA projects. Indicate the amount for MTA sales tax.
SPD Sales TaxSpecial Purpose District (SPD) sales taxes are imposed in addition to state and local taxes. Indicate the sales tax for SPDs.
Other Sales TaxesYou may add other sales tax to be collected from various taxation rules.
Total Sales TaxIndicates the sum of all the sales taxes to be collected.

You can modify the applicable tax rates and add as many tax rates as needed.

  • After defining the values for each tax type, set up the tax component for the plus 4 taxation. To set up tax component, refer to Set Up Tax Components
  • Make sure to select Postal Rate for the tax rate and specify the type of tax to be used.
  • After setting up the tax component, assign the tax component to a tax scheme. Refer to Tax Schemes for more info on tax schemes.
  • Assign the tax scheme to the customer ship to tax. Specify the plus 4 taxation in the customer address section.
  • Create a sales order or an invoice and notice that the tax rate reflected comes from the Zip+4 Taxation that was set up.
 
  • Monday, 08 April 2013