How to Set Up Sales Tax Settings for Alabama Simplified Sellers Use Tax

Highlighted
New Member
5 0 0

I recently registered for Alabama Simplified Sellers Use Tax.

 

Basically it's a flat 8% sales tax on all sales made into Alabama. No county, no municipal, no city. Just a flat rate 8% to the  state.

 

So how do I override the settings properly in Shopify > Settings > Taxes >  United States? On the override, there's an option called "Applies to all counties and cities" which is currently checked (alongside to "8%" on "Alabama (state)" field).  If that's checked, does that mean it'll charge additional 8% to city/counties with the 8% state? Or does that mean all counties/cities will be 0% and 8% will be on the state?

 

On the override, I also see Montgomery (county) and (city) below Alabama (state). Should I check them, too and set the percentages to "0"? Or since "Applies to all counties and cities" checked, I don't need to bother messing with Montgomery (county) and (city) options?

 

I want to set up these sales tax the right way. I don't wanna mess it up, end up paying $$$ in fines and losing valuable time correcting the mistakes.

 

Thanks!

0 Likes
Excursionist
10 0 4

Hi Mkco13907,

I had to setup an override for Illinois a while back for a similar "flat rate" and the way the settings are suppose to work is...

The Alabama (state) is set to 8%

Montgomery (county) is set to 0%

Montgomery (city) is set to 0%

The boxes to the left of the three items above are checked. Finally the "Applies to all counties and cities" is left unchecked. 

After making these changes I suggest you initiate a test transaction (but it doesn't have to be submitted) in order to verify the rate that the tax is being calculated.  If it does not calculate at 8% then contact support.  I'm mentioning because at some point we had to get support involved. Hopefully your setup will run smoother. 

Hope that helped.

0 Likes