If you are looking to launch your ecommerce in the US you will quickly be confronted with the problem of calculating taxes.
Unlike French taxation with our good old VAT, taxes in the US are calculated according to the States.
Therefore, it is easier to understand why the prices displayed on American Ecommerce are tax-free. The tax is calculated at checkout at the moment when the user enters his delivery address.
Indeed, a product will not have the same tax collected depending on whether it is sent to New York or Miami. These taxes vary from one state to another, or even from one city to another. One can quickly imagine the associated complexity.
In addition, unlike our good old VAT, taxes can vary and be updated punctually, each state can decide to vary it unexpectedly, 'at its own discretion'.
One of the techniques is to create a rate matrix in Magento who will be called to the checkout. Nevertheless, any rate changes will need to be updated in the back office.
The most effective option will therefore be to use Avalara and their Avatax tax matrix.
The service is not for free, but is really worth it and represents a precious time saver.
(to be continued...)
