The WooCommerce Blog

Tips, tricks and eCommerce inspiration from WooCommerce experts.

Get access to customer-only benefits

Why U.S. Merchants Should Automate Sales Tax

July 31, 2019 - 2 Comments

Want to spend more time managing your WooCommerce store, and overseeing day-to-day business, than handling taxes? The road to compliance need not be paved with bumps and setbacks. It can be as simple as syncing WooCommerce with a software solution and automating the sales tax collection process.

Before thinking about automation, you need to understand the basics. Thankfully, Internet sales tax is just a pass-through tax exchanged between seller and state. You’re not on the hook for paying anything out of your own pocket. You are, however, responsible for collecting the right amount, in the right state, and remitting in a timely manner.



Continue Reading

How to Prepare for The Post-Holiday Tax Season

September 23, 2018 - 3 Comments

Do you ever watch old Charlie Chaplin movies? Every time things are going great, the poor guy gets knocked down. (Often literally.)

Watching those movies reminds me of the January sales tax “perfect storm.” In Q4 everything is gravy – you’re making sales, gaining new loyal customers, and watching the dollar bills pile up. Then January rolls around and you have a sales tax filing due. Suddenly all those sales translate into exponentially more work as you attempt to fill in your tax forms.

If you’ve never filed a sale tax return before, here’s a sneak peek of what you might find:

Yikes.
Yikes.

If you’re completing this form, you’re required to figure out where each of your sales was made and how much sales tax you collected from your customers. It can be a long, intimidating process — and pretty annoying if you’re riding high from collecting those Q4 profits.

Here’s how you can prepare now so the post-holiday sales tax perfect storm doesn’t catch you unaware.

Continue Reading

WooCommerce Sales Tax for the US: How to Enable Automated Calculations and Filing

June 26, 2018 - 23 Comments

The US Supreme Court decided this week that each state can now require sales tax to be collected on internet sales. This ruling opens the door for states to do something that they haven’t been able to before: tax a lot of internet sales.

tl;dr: Enable free, automated, single nexus tax calculations with WooCommerce Tax, or for additional nexus and more complex tax scenarios, and auto-filing, try TaxJar.

While WooCommerce can’t advise you on which taxes your business needs — that’s a question for your accountant — you can configure settings in WooCommerce to either manually or automatically calculate taxes based on the requirements of the new rules.

Continue Reading

The WooCommerce Seller’s Guide to Resale Certificates

February 15, 2018 - 2 Comments

As an online seller, chances are you buy the products you sell from a wholesaler or other supplier. Or, if you’re a crafter or manufacturer, you most likely buy the component parts of your products somewhere.

The good news is that, in the U.S., you can buy products or component parts you intend to use for resale without paying sales tax. You can do this by presenting a resale certificate – also known as a “reseller’s permit” or, more broadly, an “exemption certificate” – to your vendor.

The slightly less good news is U.S. sales tax is governed at the state level, and that means rules and laws on using resale certificates vary from state to state. However, there are some general rules of thumb when it comes to using resale certificates, and we pulled together state-by-state guides to using resale certificates in the 45 U.S. states and Washington D.C. that have a sales tax.

Let’s dig in!

Continue Reading

Developer’s Cheat Sheet: 5 Sales Tax Questions to Ask WooCommerce Clients

February 13, 2018 - 2 Comments

You’re a WooCommerce store developer with a lot on your plate. The last thing you need are sales tax questions or omissions – an often-forgotten but vital aspect of a website throwing off your development timeline. That’s why we put together the last cheat sheet you’ll ever need for helping clients set up sales tax on their online store.

5 Sales Tax Questions to Ask Clients

There are five essential questions to ask clients before setting up sales tax collection in their WooCommerce store. We’ll go over each one and why you need to know the answer to best provide a full-service sales tax setup.

Continue Reading

Sales tax 101 for store owners: your pressing questions answered

January 12, 2016 - 3 Comments

Missed our Sales Tax 101 webinar with TaxJar? Not to worry: we’ve collected your most pressing questions about collecting and managing sales tax into this FAQ, plus made the slides available for download (for free!). Have a look…

Over the course of the last few weeks, we’ve been lucky enough to work with the folks at TaxJar on a webinar about sales tax for store owners. It’s been an eye-opening experience, to say the least, even for those of us with experience managing an eCommerce store. Who knew tax could be so complex?

We’ve been keeping an eye out for the most commonly asked questions about sales tax, and now we’ve compiled them all into one spot. This post will give you quick rundown of what you should know about state sales tax, plus links to resources where you can learn more.

If you’re new to tax in your online store or just have a few questions about your situation, read on to have all your pressing questions answered — and to get a free download of the webinar slide deck.

Continue Reading

Give yourself a yearly sales tax checkup

January 5, 2016 - 2 Comments

Humans like things that are simple. And I think store owners like simplicity best of all. You like to check items off your checklists, or archive them in your project management apps, secure in the knowledge that you’ve dealt with them and can move on.

I talk to a lot of store owners based in the US, and have noticed a few common reactions to the not-at-all-simple task that is dealing with state sales tax. Most opt for the “do it yourself” method. This works great until the business starts to grow and thrive. Then sales tax becomes a time-consuming nightmare that doesn’t fit neatly into a to do list.

Others go all out and hire a sales tax accountant to take care of everything for them. This is expensive, and is also often overkill. There’s also the “bury your head in the sand” method — ignore it and hope it goes away. That just a bad idea all around.

My philosophy is that, with the right combination of education and sales tax automation, store owners can make short work of their sales tax burdens. You can start on the education aspect of this by giving yourself a yearly tax checkup.

Let’s get started on your yearly tax checkup. But first, I’ll explain why this all seems so complex.

Continue Reading

How to Charge Your Customers the Correct Sales Tax Rates

December 28, 2015 - 4 Comments

So you get that as a 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 sales tax nexus.

But 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.

tl;dr: Enable free, automated, sales tax tax calculations for your store in a single state with WooCommerce Tax. Or for additional locations, multiple sales channels (Amazon, Walmart, etc), and to take advantage of fully automated filing services, we recommend you choose TaxJar.

Let’s get started.

Continue Reading

WooCommerce - the most customizable eCommerce platform for building your online business.

  • 30 day money back guarantee
  • Support teams across the world
  • Safe & Secure online payment