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Recent US Supreme Court decision now concludes that each state is allowed to require sales tax on internet transactions, regardless of if they have a physical presence in the state. Prior to this decision, only stores with a nexus (office, employee, warehouse, etc) were demanded to collect internet sales tax. At the moment, there’s confusion over how much money a business has to make before state sales taxes would apply. The court case South Dakota vs Wayfair declared that retailers making more than $100K or 200 transactions in a state is significant. However, it is not clear if other states use that same standard.
How will this new rule affect Florida?
Many Florida business were delighted by the court decision. Many thought that it was unfair that they did not have to collect sales tax, so this evens out the playing field. Florida has a strong dependence on sales-tax revenue. Sales tax is the biggest source of funding for the state. The exact impact is not clear, however, it will be significant. The Florida House Ways & Means Committee Ways & Means Committee calculated an estimate of $200 million in sales tax revenue from applying tax to more sales.
What to do in your woocommerce website?
On WooCommerce, you can set the settings to manually or automatically calculate taxes. These setting can be found by clicking on “Settings” and then the “Tax” tab. It is possible to enable automated tax calculations, which is a handy tool. The following two plugins assist with calculations:
This plugin is free and for merchants with single sales tax nexus. It automatically calculates how much sales tax should be collected for WooCommerce orders – by city, country, or state – at checkout. Currently available in over 30 countries.
This plugin is for merchants with additional nexus locations. It is free for the first 30 days. After those days are up, pricing begins at $17 per month for 1,000 calculations. Every night, the plugin will import sales information into distinct state reports. It allows you to know where you stand with these new laws in different states.
Orlando WordPress Developer
Are you having difficulty ensuring that your WordPress Website is complying with the new law? If you need help finding the right plugins for your website, we can help! We are Orlando WordPress Experts and we can help you find the best plugin for your site. Please contact us for a free quote!