Taxes placed on the sale or lease of goods and services in the United States are called sales taxes. Sales taxes are only charged at the final point of purchase, so resellers and wholesalers are exempt from paying tax. However, any merchant in the US needs to be sales tax compliant, which means that retailers have to charge sales tax to buyers in states where they have sales tax nexus or physical or economic presence, in other words.
You can configure US sales tax in X-Cart using one of the following add-ons:
Sales Tax - an add-on for manual configuration of sales tax. Setting up sales tax in X-Cart 5 using this add-on takes time and effort, but the system provides enough flexibility to configure even the most intricate tax calculation rules. If necessary, you can set tax rates depending on the tax class of the products in the order, the customer’s address zone, and the customer’s membership level. See the Sales Tax add-on manual.
Whether you choose to configure your sales tax manually or use an automated solution, be sure first to consult your accountant or local tax authority on the tax requirements that apply to your online business. It is highly recommended to ensure you charge tax properly for your store.
For more information, see: