> ## Documentation Index
> Fetch the complete documentation index at: https://docs.pluvel.com/llms.txt
> Use this file to discover all available pages before exploring further.
# Sales Tax
> Collect, track, and remit sales tax across multiple states.
Sales tax sounds simple until you realize there are over 13,000 tax jurisdictions in the US, each with different rates, rules, and product classifications. A product might be taxable in California but exempt in Texas. And if you sell online, you might owe tax in states you've never visited.
Pluvel integrates with TaxCloud to calculate the right rate automatically, track what you owe, and help you file returns in every state where you have obligations.
## How sales tax works in Pluvel
Tell us which states you have sales tax obligations (nexus).
We use TaxCloud for real-time tax rate calculations based on product type and shipping address.
When you create invoices or sync e-commerce sales, we calculate the correct tax.
We track collected tax and prepare your returns. File directly or export for manual filing.
## Setting up sales tax
### Step 1: Determine your nexus
You have sales tax nexus in states where you:
* Have a physical presence (office, warehouse, employees)
* Exceed economic nexus thresholds (typically \$100k in sales or 200 transactions)
Go to **Settings → Sales Tax → Nexus** to add states.
### Step 2: Connect TaxCloud
TaxCloud handles the complexity of 13,000+ tax jurisdictions:
1. Go to **Settings → Integrations → TaxCloud**
2. Click **Connect** and create a TaxCloud account (free)
3. Complete the TIC (Tax Information Code) setup for your products
TaxCloud is free for tax calculation. They earn revenue from filing services, but you can file manually if you prefer.
### Step 3: Map your products
Different products are taxed differently. Common categories:
| Category | Example | Typical Treatment |
| ------------- | -------------- | ----------------------- |
| General | Physical goods | Taxable |
| Software SaaS | Cloud services | Varies by state |
| Digital Goods | Downloads | Varies by state |
| Services | Consulting | Often exempt |
| Food | Groceries | Often exempt or reduced |
Map your products to TaxCloud's TIC codes in **Settings → Products → Tax Categories**.
## Collecting sales tax
### On invoices
When you create an invoice:
1. Add line items with their tax categories
2. Enter the customer's shipping/service address
3. Pluvel calculates tax automatically
4. Customer sees tax as a separate line item
### From integrations
If you use Shopify, Stripe, or Square:
* Sales sync automatically to Pluvel
* Tax collected is recorded
* We match it to your nexus states
## Tracking sales tax liability
Go to **Reports → Tax → Sales Tax** to see:
### By state
| State | Taxable Sales | Tax Collected | Tax Rate | Due |
| ---------- | ------------- | ------------- | --------- | ------ |
| California | \$45,230 | \$3,619 | 8.00% avg | Mar 31 |
| Texas | \$28,100 | \$2,311 | 8.22% avg | Apr 20 |
| New York | \$12,450 | \$997 | 8.01% avg | Mar 20 |
### By period
View monthly or quarterly summaries to match your filing frequency.
## Filing sales tax returns
### Automatic filing (with TaxCloud)
If you use TaxCloud's filing service:
1. We send your sales data to TaxCloud monthly
2. TaxCloud prepares and files returns in each state
3. They remit payment on your behalf
4. You fund your TaxCloud account to cover remittances
### Manual filing
If you file yourself:
1. Go to **Reports → Tax → Sales Tax Returns**
2. Select the period and state
3. Download the report with totals by jurisdiction
4. Enter figures into the state's filing portal
5. Mark as filed in Pluvel
## Understanding nexus
### Physical nexus
Traditional nexus—you have physical presence:
* Office or retail location
* Warehouse or inventory
* Employees working in the state
* Temporary presence (trade shows, pop-ups)
### Economic nexus (post-Wayfair)
Since 2018, most states require collection if you exceed thresholds:
| Threshold Type | Common Amounts |
| -------------- | ------------------ |
| Sales | \$100,000 per year |
| Transactions | 200 per year |
We track your sales by state and alert you when approaching thresholds.
### Marketplace facilitator rules
If you sell through Amazon, Etsy, or eBay:
* The marketplace collects and remits tax
* You don't need to collect on those sales
* Make sure to exclude marketplace sales from your nexus calculations
## Exemption certificates
Some customers are tax-exempt (nonprofits, resellers, government):
### Storing certificates
1. Go to **Customers → \[Customer Name] → Tax Status**
2. Upload their exemption certificate
3. Select applicable states and expiration date
### Applying exemptions
When you invoice an exempt customer:
* Tax is automatically excluded
* The exemption certificate is referenced
* Audit trail is maintained
You're responsible for collecting and validating exemption certificates. Invalid certificates mean you owe the tax.
## Use tax
Use tax applies when you buy taxable items without paying sales tax (e.g., out-of-state purchases):
1. We track purchases where no tax was charged
2. Calculate use tax owed by state
3. Include it in your return (or file separately)
Go to **Reports → Tax → Use Tax** to see your obligations.
## Common questions
If you sell taxable goods or services and have nexus in a state, yes. Nexus can be physical (location, employees) or economic (sales exceed thresholds). Most states have economic nexus around \$100k in sales.
SaaS taxability varies by state. About half of states tax SaaS. TaxCloud handles this complexity—just map your products correctly and we apply the right treatment.
When you issue a refund, the sales tax is also refunded. Pluvel tracks this and deducts it from your next period's liability.
If you under-collected, you owe the difference. If you over-collected, you should refund the customer or remit the extra to the state. Pluvel flags rate discrepancies in your reports.
Set up automatic sales tax calculation.