In 1992 the Supreme Court made a decision in the Quill Corp.-vs.-North Dakota case that did not require out-of-state retailers to have to collect sales tax on items sold to customers if they did not have a brick-and-mortar, or physical presence of any kind, in the state the customer resides in. This decision has led to more than 40 states asking the Supreme Court to reconsider this ruling as it is causing the states to lose out on “billions of dollars in tax revenue each year.” Last Thursday, June 21st, 2018, in the case of South Dakota-vs.-Wayfair Inc, Supreme Court ruled that online sellers will now have to collect state sales taxes on items they are shipping to that state, whether they have a physical store there or not. Larger retailers that have brick-and-mortar stores nationwide have been collecting sales tax, meaning this could potentially only be detrimental to small businesses because of how complex and expensive collecting taxes nationwide is.
As a consultancy, we are here to help. Here are several ways that taxes can be handled in Magento:
A tax compliance solution to fit the needs of your growing small business.
Good for trying to figure out if your state charges sales tax based on your location or the location of your customer.
Manage taxes in Magento’s Admin manually
- We can schedule a training call to walk you through the below processes if you’re not familiar
- Taxes for Magento are located in the Magento Admin under Sales>Tax
To see how to manage taxes you can read this tutorial here. You can also search Google with the following search terms:
magento 1.9 tax setup