Hi, I recently launched a small Ecommerce site and noticed that tax isn’t always being charged to the customer. I do have all the “auto calculate” tax options on, but the final transaction total that shows on the order details and in my Stripe account is a flat amount that shows tax hasn’t been charged on this specific transaction.
So far in 24 hours we’ve had 3 total purchases. The first was a test, which did include tax in the total, and it also showed tax in the second, but in the third no tax was charged. I don’t want this to be an ongoing issue with transactions that I have to watch and confirm for every one.
In what state do you reside? In what state does this person/transaction reside in?
With taxes, it can be a tricky thing. Depending if you are in a state that is destination-based or one that is origin-based will depend on how tax is calculated or if it will even be pulled.
NY is a destination-based sales tax state. What this means is that they will only collect sales tax for states that require it. Taxjar knows what states do and do not. I will have our resident Taxjar expert look into this though just to make sure.
Hi @PeteTrav, just following up on what my colleague Brandon mentioned. NY is a destination-based tax state so only when shipping within NY will sales tax be collected. The taxes applied could include a combination of state, county, city, and district tax rates.
Thanks @johnramos and @QA_Brandon , I also looked into that and came up with the same answer. I really appreciate your help. I never knew that about NY or that it was even a thing, so thats good to know.