Sales Tax

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.

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How sales tax works in Pluvel

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Setting up sales tax

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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.

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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

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Step 3: Map your products

Different products are taxed differently. Common categories: Map your products to TaxCloud’s TIC codes in Settings → Products → Tax Categories.

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Collecting sales tax

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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

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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

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Tracking sales tax liability

Go to Reports → Tax → Sales Tax to see:

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By state

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By period

View monthly or quarterly summaries to match your filing frequency.

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Filing sales tax returns

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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

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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

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Understanding nexus

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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)

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Economic nexus (post-Wayfair)

Since 2018, most states require collection if you exceed thresholds: We track your sales by state and alert you when approaching thresholds.

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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

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Exemption certificates

Some customers are tax-exempt (nonprofits, resellers, government):

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Storing certificates

1. Go to Customers → [Customer Name] → Tax Status
2. Upload their exemption certificate
3. Select applicable states and expiration date

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Applying exemptions

When you invoice an exempt customer:

• Tax is automatically excluded
• The exemption certificate is referenced
• Audit trail is maintained

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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.

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Common questions