Author Topic: How are you folks collecting destination-based sales tax in the US?  (Read 455 times)

Offline Rexa

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Hello!

I am giving AbanteCart a try after having not finding the out-of-the-box functionalities that I need from other e-commerce platforms. So far, it's been a very user-friendly experience within the several hours of giving it a test-run, and it seems to incorporate everything I need.

I am now curious though what extensions or modifications some of you in the US are using to collect destination-based sales tax. As some of you may know, over half (over 30) US states now require collection of a certain percentage of tax based on the county/city that the product is being shipped to.

For example, I am in New York State which has about 70 counties.  NYC County has a rate of 8.875% while Westchester County has a rate of 8.375%. If I ship to Westchester, I have to collect 8.375%

There has been a recent crack-down on online retailers who have not been applying the correct sales tax (I work for an online company and customers are slowly becoming aware that they should be charged their own county rates). Now that I am looking to create my own store, I'd like to do it the right way and ensure I am collecting the appropriate tax rates. I know many stores have been getting away with it by just applying their location's tax rate, but again, customers are becoming more and more informed about this, at least in my areas, and I'd like to approach it correctly.

The only workaround I have found which I don't want to use is to set New York state as a "country" instead, and make each county as a "zone." I don't like using this approach though for numerous reasons which I won't go into.

Just wondering what advise anyone can offer here.


« Last Edit: April 24, 2017, 11:54:51 AM by Rexa »

Offline Basara

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Re: How are you folks collecting destination-based sales tax in the US?
« Reply #1 on: April 25, 2017, 03:58:49 AM »
Hello.

By default Taxes in AbanteCart calculated based on customer's delivery address. What you need is to create proper Locations and Tax Rates (Rules) based on your setup
http://docs.abantecart.com/pages/quickstart/setup_taxes.html

I hear soon will be available Integration with Avalara Sales Tax Software so all taxes will be calculated more accurate without manual tax rates setup    ;D
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