> ## 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.
# TaxCloud
> Automate multi-state sales tax calculation, collection, and filing.
Sales tax is a nightmare if you sell across state lines. Each state has different rates. Some have local taxes on top. Certain products are exempt in some states but not others. And you need to file returns in every state where you have nexus.
TaxCloud handles all of it. Real-time tax calculation at checkout. Automatic filing in every state. They pay the states for you. Connect it to Pluvel and your sales tax compliance becomes someone else's problem.
## What TaxCloud does
| Function | What happens |
| -------------------- | ------------------------------------------ |
| **Tax calculation** | Real-time rates for 13,000+ jurisdictions |
| **Tax collection** | Correct rate applied at checkout |
| **Tax filing** | Automatic returns in all your nexus states |
| **Tax remittance** | They pay the states for you |
| **Audit protection** | Documentation for every transaction |
TaxCloud is free for basic usage. They make money from the states, not from you.
## Do you need this?
You probably need sales tax automation if:
* You sell physical products online
* You have nexus in multiple states
* You ship to customers in different states
* You'd rather not file 15 separate state returns
### Economic nexus: the basics
Most states now require you to collect sales tax once you exceed certain thresholds:
| Threshold type | Examples |
| ------------------ | ---------------------------------------------------------------- |
| \$100,000 in sales | California, Texas, New York |
| 200 transactions | Some states use count instead of dollars |
| Combined | Many states use "either/or" — hit either threshold and you're in |
If you're selling nationally, you probably have nexus in at least a few states.
## Connect TaxCloud
Go to taxcloud.com and sign up. It's free to create an account.
In TaxCloud, add your business address and register the states where you have nexus.
In TaxCloud Settings, find your API ID and API Key.
Go to **Settings → Integrations → TaxCloud** and enter your API credentials.
Set your nexus states and product tax categories.
## How it works with Pluvel
### Invoice tax calculation
When you create an invoice:
1. You add line items and the customer's shipping address
2. Pluvel sends the details to TaxCloud
3. TaxCloud returns the exact tax rate for that address
4. Tax is added to the invoice automatically
You never have to look up rates or worry about getting it wrong.
### E-commerce integration
If you use Shopify with TaxCloud:
1. TaxCloud calculates tax at Shopify checkout
2. Sales sync to Pluvel with tax included
3. TaxCloud handles filing — you don't touch it
### Tracking tax collected
All sales tax flows to your Sales Tax Payable account. You can see:
* Tax collected by state
* Tax collected by local jurisdiction
* When filing is due
## Setting up nexus
Nexus means you have a tax obligation in a state. You create nexus through:
| Nexus type | Example |
| ------------------- | ------------------------------------------------------------------- |
| Physical presence | Office, warehouse, or employee in the state |
| Economic nexus | Sales over the threshold |
| Click-through nexus | Affiliate relationships |
| Marketplace nexus | Selling on Amazon, Etsy (though marketplaces often collect for you) |
In TaxCloud, register every state where you have nexus. They'll file returns for those states.
## Product taxability
Different products have different tax treatment:
| Category | Treatment |
| ---------------- | ------------------------------------------- |
| Tangible goods | Taxable at standard rate |
| Clothing | Exempt or reduced in some states |
| Food/groceries | Exempt or reduced in many states |
| Digital products | Varies by state |
| Software/SaaS | Varies widely — some states tax, some don't |
| Services | Usually exempt |
Set the correct TIC (Taxability Information Code) for each product. TaxCloud uses this to apply the right rate.
## How filing works
TaxCloud files returns and remits tax automatically:
1. At the end of each filing period (monthly, quarterly, or annually depending on the state)
2. TaxCloud prepares returns for each nexus state
3. They submit returns on your behalf
4. They pay the states using their registered agent status
5. You fund TaxCloud before the deadline
Make sure your TaxCloud account has sufficient funds before filing deadlines. Failed filings can result in penalties and interest.
## Viewing your tax data
In Pluvel, you can see:
* **Sales Tax Summary** — Tax collected by state
* **Liability Report** — What you owe by filing period
* **Transaction Detail** — Tax on individual transactions
TaxCloud also has detailed reports in their dashboard.
## Common issues
Check that:
* Your TaxCloud API credentials are correct
* The customer address is complete (need full address for accurate lookup)
* The product has a valid TIC code
* Your TaxCloud account is active
Tax rates depend on:
* Ship-to address (not your business address)
* Product category
* State-specific exemptions
Verify the TIC code matches your product type.
You must register nexus states in TaxCloud before they'll file for you. Go to TaxCloud → States → Add State.
Exempt customers (resellers, nonprofits) need exemption certificates. Upload these to TaxCloud and associate with the customer.
## Alternatives
TaxCloud isn't the only option:
| Alternative | Best for |
| ------------- | ----------------------------------- |
| Avalara | Enterprise, high transaction volume |
| TaxJar | Mid-size businesses |
| Manual filing | Low volume, few states |
## What TaxCloud costs
TaxCloud is free for:
* Tax calculation
* Filing in participating states
Fees apply for:
* Filing in non-participating states
* Premium support
* Some enterprise features
Configure sales tax collection for your business.