So you get that as an eCommerce store owner, you need to be sales tax compliant. This means that in the United States specifically, you have to charge sales tax to buyers in states where you have nexus. All states have a slightly different definition of nexus, but most of the time states consider that a “physical presence” or “economic connection”, based on sales into that state, creates nexus.
Even after you have done the research to understand where you have nexus, then how much do you charge? Does it vary from customer to customer? And why does this have to be so complicated?
And more importantly, is there a solution that can automate everything so WooCommerce customers don’t have to deal with any of this? The good news is, yes there is!
First, we’ll explain a bit about how sales tax works, and then we’ll show you how you can use TaxJar to automate the entire process so you never have to stress about sales tax again.
While determining the right rates to charge can be tricky, a little reading will help you wrap your head around it in no time. Today, we’ll explain the different sales tax rates in the United States, and help you figure out which rates to charge your customers.
If you’re a growing eCommerce business with multiple sales channels (WooCommerce, Amazon, Walmart, etc.), and want to take advantage of fully automated sales tax and filing services, we recommend you choose TaxJar.
Let’s get started.