You should use an outside service:
- Rates can vary not just by state and county, but by city, zip and even special tax districts. You need the full Street Address.
- The percentages and rules change frequently, requiring constant updates.
- Each state has different rules for what creates a "nexus" (an obligation to collect sales tax). Economic nexus laws mean businesses may owe taxes in states where they have no physical presence. As little as 200 sales a year can obligate you to collect tax in State.
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Some products and services are taxed differently depending on how they are combined in a sale with other products (e.g., adding one item to an order may result in the entire order becoming taxable when it was not before).
- Some states require monthly filings, others quarterly or annually, with different deadlines and reporting formats.
- Incorrect tax collection or remittance can lead to audits, fines, and penalties.
States aggressively pursue unpaid sales tax.
For all of these reasons we recommend Avalara's Avatax:
https://www.odoo.com/documentation/master/applications/finance/accounting/taxes/avatax.html
Hi Karen,
I recently developed a solution very similar to what you are asking for, but for one of my clients. If you’d like me to send you some information about it, shoot me an email at: sanford@aglow.dev
Even if you have already signed up with Avalara, it might be worth a look. I know these systems can get expensive.