Setup

Calculating Tax for Dropship Orders

This article explains how tax can be calculated for your dropship orders.

Last updated July 2nd, 2020

Part of setting up the payments for your vendors is also setting up how tax will be calculated. Once you choose the preferred settings in Jetti, the tax will be calculated automatically.

Calculating the Tax

How to do this:

  1. Go to your vendor settings in Jetti and click on the Prices-tab

  2. Scroll down to Tax & Accounting, and choose how the tax should be calculated. Here are the options:

    • Do not generate sales tax: Do not calculate the tax for orders, even if the customer paid sales tax at checkout.
    • Taxjar: Use our TaxJar integration for automatically generating sales tax.
    • Use the same rates paid by the customer: Any tax rates generated on the customer's order will be applied to the dropship purchase order.
    • Manual: Set a specific tax rate to apply. This can be setup under Setup > Tax rates.

Changing the tax rate settings once change things on historical orders. You'll need to recalculate in the case you need information on older orders.

  1. Next, you need to select whether taxes should be charged in the shipping rates and if the tax should be included in your price. Just toggle the settings by your preference.

If you choose to include tax in the price, then you will be shown just one price for a product, and tax will be marked as zero.

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