Support » Plugin: WooCommerce » Not charging tax for a physical product

  • Resolved tamar

    (@tamar)


    I just launched my store (in NY) and have WooCommerce “enable automated taxes” turned on.

    But I noticed that a California resident bought from me last night (my first sale on the WooCommerce platform) and he didn’t pay tax.

    I’m pretty sure we all pay tax in the US. Any ideas what I need to do to get tax to generate properly?

Viewing 7 replies - 1 through 7 (of 7 total)
  • Plugin Support tijosh a11n

    (@tijosh)

    Hi there @tamar,

    Most stores in the US will only collect tax for sales to customers within their state, or tax “nexus.” The automated tax calculation from WooCommerce Shipping & Tax will automatically calculate taxes for sales within a single tax nexus. For stores with multiple tax nexuses, a service like TaxJar is the way to go.

    We recommend verifying with an accountant which taxes your store is required to collect. We have a bit more about it in this blog post.

    Hope this helps!

    Thread Starter tamar

    (@tamar)

    I consulted with my accountant. Is there a way to just specify that WooCommerce accept tax from all US states (nexuses) without using a third party tool like TaxJar?

    Thread Starter tamar

    (@tamar)

    Wanted to see if this was possible to collect taxes in the US without a paid option, hopefully I didn’t lose you guys.

    Plugin Support tijosh a11n

    (@tijosh)

    Hi there @tamar,

    To collect taxes from purchasers in all states, you can manually set up rates for those location using the core WooCommerce tax options. We have a guide on setting that up here.

    For these rates to apply, the automated tax calculation needs to be disabled at WooCommerce ā†’ Settings ā†’ Tax. (See this screenshot.) If you disable this option, the automatic tax calculation from the WooCommerce Shipping & Taxes plugin will be turned off, while the rates that you set up following the guide will be in effect on the site.

    • This reply was modified 1 year, 10 months ago by tijosh a11n. Reason: Added screenshot
    Thread Starter tamar

    (@tamar)

    Thanks tijosh – and there’s NO way for this to be automated outside of a paid plugin?

    Plugin Support mouli a11n

    (@mouli)

    Hi @tamar
    Once you have manually set up the rates for each state it will calculate the tax on each purchase based on those settings.
    Any options for automated tax calculation would both, if I understand US taxes well enough, return no tax for sales to CA from a store located in NY.
    https://woocommerce.com/products/tax/ is a free plugin for WooCommerce that will calculate taxes automatically.
    If you want to charge tax in this case you would need to use the manual tax option.

    I hope that helps you to figure it out.
    Feel free to get back to us if you have further questions.

    Plugin Support Ena P (a11n)

    (@drwpcom)

    Hi @tamar. We haven’t heard from you in a while. I hope that means you’ve resolved the issue.

    I’m going to go ahead and mark this thread as resolved. If you still need help with this issue or have any other questions about the WooCommerce plugin, please start a new thread.

Viewing 7 replies - 1 through 7 (of 7 total)
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