Support » Plugin: WooCommerce » Tax question (revisited)

  • Resolved tamar

    (@tamar)


    Sorry, my plan was to reply to the thread you marked as resolved earlier today this afternoon but I missed the mark and it was marked as resolved.

    See the original thread here: https://wordpress.org/support/topic/not-charging-tax-for-a-physical-product/

    So I already have the plugin you suggested. But the issue is it still incurs tax only for my local state (NY) and nowhere else, so people in CA, for example, aren’t paying taxes when they buy, thereby leaving the liability to me.

    My question is: how do I force the plugin to charge tax for my current state and ALSO have everyone pay their taxes so I don’t have to later? I’m surprised with having to pay taxes on Amazon, eBay, etc that this is something I have to ask about since isn’t it the norm right now?

    Right now, the options when going to wp-admin/admin.php?page=wc-settings&tab=tax are the defaults, which are “enable automated taxes” etc. But the options are not editable at all, but I’m not sure they’d solve the problem anyway.

    Perhaps I’m missing something here?

    • This topic was modified 1 year, 9 months ago by tamar.
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  • Plugin Support Adam a11n

    (@adamkheckler)

    Hello again!

    First, I just want to note here that I am not a tax professional, and anything said here is no substitute for advice from one.

    But the issue is it still incurs tax only for my local state (NY) and nowhere else, so people in CA, for example, aren’t paying taxes when they buy, thereby leaving the liability to me.

    My question is: how do I force the plugin to charge tax for my current state and ALSO have everyone pay their taxes so I don’t have to later?

    As we note in our documentation here:

    https://docs.woocommerce.com/document/woocommerce-shipping-and-tax/woocommerce-tax/#section-4

    If your store is based in the United States, you only need to collect sales tax from customers in locations where you have a “tax nexus,” which typically means a physical presence. WooCommerce Services uses your store address (WooCommerce > Settings > General) as your “tax nexus”.

    For you, this means that as long as you’re using our automated taxes feature, automated taxes will only be charged for customers in the same state as your store, i.e. New York.

    That said, some states have enacted laws that force remote businesses to pay taxes under certain conditions. Those laws are covered on this page:

    https://www.avalara.com/us/en/learn/guides/state-by-state-guide-economic-nexus-laws.html

    Checking the California section, the trigger is shown as $500,000 in sales for the preceding or current year. So, my interpretation of that is, unless you are doing over $500k in sales in California alone, no taxes need be collected.

    However, if you feel that you need to charge tax for any other state, you can add a tax rate for that state in addition to using automated taxes to charge customers from that state tax as well:

    https://docs.woocommerce.com/document/setting-up-taxes-in-woocommerce/#section-12

    Hope that helps! 🙂

    Thread Starter tamar

    (@tamar)

    Thanks – cool, solved.

    The section 12 link with the importable CSV (link here: https://docs.woocommerce.com/wp-content/uploads/2013/02/us_tax_rates.csv) was what I needed, thank you.

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