Sales Tax Setup

The Taxes Settings page in CloudBridal allows you to configure sales tax rates and rules for your store. These settings determine how tax is calculated and applied to customer orders, helping ensure accurate tax collection and reporting.

Tax Configuration Overview

CloudBridal offers a flexible tax system that allows you to:

1. Define multiple tax rates and rules
2. Apply different tax rates to different item types
3. Set up threshold-based tax rates for jurisdictions with special rules
4. Configure tax exemptions for specific orders

Configuring Sales Taxes

Creating Sales Tax Definitions

1. Navigate to the Sales Tax area in settings
2. Click Add Tax
3. Enter the following information:

• Tax Name: A descriptive name (e.g., "State Sales Tax", "City Tax")
• Tax Percent: The percentage rate to apply

Apply Default Sales Tax to Item Type

1. Navigate to the Inventory Items area in settings
2. Edit an item type
3. Set the Default Applicable Taxes dropdown for that item type. The tax will then be applied by default when creating a new order for that item.

Threshold-Based Tax Rates

For jurisdictions with tax thresholds (like Massachusetts where clothing under $175 is tax-exempt):

1. Create a new tax definition
2. Enable Price-Based Tax Rules
3. Configure the threshold settings:

• Price Threshold: The amount that triggers different tax treatment
• Tax Application Method: How to handle amounts that cross the threshold:
• • Tax Amount Over Threshold: Apply higher rate only to the portion exceeding the threshold
  • Tax Entire Amount: Apply higher rate to the entire amount once threshold is exceeded

Tax Exemptions

To configure tax exemptions:

1. Create a tax with 0% rate and give it a name like "Tax Exempt"
2. When creating or editing an order, you can select this tax exemption instead of the default tax

Tax-Inclusive vs. Tax-Exclusive Pricing

CloudBridal supports both tax-inclusive and tax-exclusive pricing:

• Tax-Exclusive Pricing (Default): Tax is added on top of the displayed prices
• Tax-Inclusive Pricing: Tax is included in the displayed prices

Payment Handling for Taxed Items

By default, payments for the main order items, alterations, additional work, and additional fees are combined into a single payment. However, you can configure these to be paid separately:

1. Go to Payment Settings
2. Enable the Paid Separately option for any components you want to split into separate payments:

• Alterations Paid Separately
• Additional Work Paid Separately
• Additional Fees Paid Separately

Updated on: 04/07/2025