Can anyone help educate me on US Tax rates? I don’t know if the US has a flat rate or varies per state etc… It would be nice to get a generic template created for people to copy or even import.
In the UK
We simply charge a flat rate of 20% VAT on all Products and Services on anything shipped within the UK (with a few minor exceptions). For example it would look something like this:
| Product/Service | Customer Pays | Net Breakdown | VAT breakdown |
|---|---|---|---|
| Pencils | £20.00 | £16.67 | £3.33 |
| Shipping | £10.00 | £8.33 | £1.67 |
Ace. I think I’ve found what I’m looking for: https://github.com/yireo/Magento_EU_Tax_Rates (assuming this is all correct)
So here is where the fun begins! All over the US there are counties that set their own sales tax rates, and here in Texas, we have different sales tax based on what seems like what block you live on. For example, my location has a county tax of .0625% and then there are two additional local entities that add additional 1% individually.
Hey @saharper and welcome.
That system sounds quite confusing with so many TAX variables. Do all merchants have to account for these variable rates? Or do they tend to generalise or round the percentage?
The laws are changing, but it used to be that you would only pay tax on where the item is delivered if you have a nexus in that location. For example if I have a physical location in a city, I would have to pay taxes for that location, but if I drop ship an item to another state for example, my customer and I would not have to pay taxes on that item. Obviously this is very generalized and simplified version of tax law, and I’m no lawyer.