Help & Resource Center

Setting Sales Tax as a SKU

Overview

Modern Retail's preferred method for handling sales tax for our lightspeed integrations is to configure a SKU to act as an additional line item representing the sales tax value. In this article, we'll talk about the upsides of this tactic, and why we prefer to do it this way.

Sales Tax and the Lightspeed Integration

An important thing to note about our Lightspeed integration is that the sales tax value for a given order must be exactly the same both in Lightspeed, and in your ecommerce platform. If the value is different, even by as much as a penny, then the order will get caught in limbo and go unfulfilled.

One way we deal with this problem is to set up an additional line item for your orders that automatically takes on the appropriate sales tax value, and then to mark orders as "non-taxable" so nobody gets double-charged. This SKU is fundamentally the same as any other product in your system, it just stores the sales tax value instead of being a typical product.

While there are other methods for handling sales tax, we've found this to be the most reliable. If you have any additional questions, please feel free to contact us with a support request.