How does TaxCloud keep track of whether an item is taxable or not?

When your shopping cart or order management system asks TaxCloud for a tax rate during checkout, it sends TaxCloud what’s known as a Taxability Information Code, or TIC, for each item being purchased. TaxCloud checks the TIC and the buyer’s location and determines whether the item is subject to sales tax in that location and, if so, the rate at which the item should be taxed.

Just make sure you’ve assigned each product in your store to the right TIC, so TaxCloud can apply the appropriate rate and taxability information. If you’re not sure how to do this, please see your cart or order management service’s website. More information is also available in the TaxCloud User Guide.

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