Setting Up Sales Tax for each US state

[BusyBee]

Man am I confused! Here is what I'm trying to do. The company that I drop ship from charges sales tax on all orders. I want to charge sales tax for each state in the US using their tax percentage according to the shipping address.

I went and added all of the states within the US to Zone Definitions, then I went and added the percentage for each state in tax rates. I have them set as Taxable Goods in the Tax Class Column and have configured each state (adding the country and state to Taxes & Zones Defined) I think everything is set correctly. I used Florida as an example and read several posts on the subject in here.

Problem is when I select Taxable Goods on my product the gross price changes to what I think is 7% from the net price. I made a test purchase and I was charged 7% sales tax but the problem is I'm in NJ and my sales tax is 7%.

Can someone tell me if this is done properly b/c I've already made the mistake of assuming it was and changed all of my products to be taxable goods and when I finally decided to test drive it I was charged $86 in tax on a $32 purchase. I had to change more than 200 products back to No Tax Class before I adjusted the tax rates, zones, definitions.

Any help would be fantastic

my site is www.HerbalShed.com if you'd like to make an "almost purchase" to see if the sales tax calculated correctly!

BTW, I'm using the Rustic Template and on the checkout pages there is a "banner" with code in it any idea how to get rid of or fix that?

Thank You kindly in advance,
Jen

[Merlinpa1969]

Are you going to be sending in the tax collected to EACH states comptroller?

You are only required to collect sales tax in the state where you actually have a business entity,

IF you have a post office box in Deleware then you collect sales tax for Deleware.

however if you DONT have a physical entity in PA then you dont collect sales tax on purchases to PA


Im pretty sure that if you try to charge sales tax in Oregon then you will have some really angry customers

[barco57]

well I tried to "almost" process an order to check the tax charged for WI......I wasn't charged any sales tax........

[Kim]

You had better talk to your accountant and tax expert. You DO NOT charge tax to every state.

[BusyBee]

Thanks everyone! I already knew that I needed to collect sales tax for NJ, didn't realize that it was a "NO,NO" to do it elsewhere.

I don't want to put I suppose I'll have to add 7% to the purchase price to compensate for the charge.

Thanks again, I love this forum!