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sales tax depending on billing address


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13 replies to this topic

#1 kinetek

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Posted 17 November 2003, 21:11

shouldn't the sales tax be determined by the billing address and not the shipping address? that seems to make sense for me but it looks like osc determines it by shipping address. how do i go about change it if this is wrong?

#2 kinetek

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Posted 19 November 2003, 19:25

nevermind...it seems that sales tax should be calculated depending on the shipping address

#3 fadedlazer

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Posted 24 December 2003, 00:11

is that the law? I always wondered about that.. Do you charge tax to someone who is using a billing address from your state, but ships to another state? Or do you charge tax when people use billing address from another state but the item ships to address in your state?

#4 iiinetworks

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Posted 24 December 2003, 00:49

I have heard (i.e. seen it posted in these forums) that it depends on the state (although you only have to pay once in case of conflict).

Btw, Shipping Address makes more sense to me. Why?

1. Shipping Address is actually known by the store. You specify the address to the shipper. A customer can make up a billing address.

2. If you go to another state and buy an item, do you pay sales tax? You bet you do, because it is "shipped" to your location (i.e. the store where you are buying it). Why should mail/internet sales be different?

Hth,
Matt

#5 puppet87181

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Posted 24 December 2003, 17:19

:huh: The sales tax has to be added if they are ordering from the same state as you. This is even if they ship to a different state. If the address is in the same state you have to add your sales tax percentage like New Mexicos is 5.812%.

#6 charly5

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Posted 03 February 2004, 23:23

I´m not sure but I think that we should add taxes for the billing address except the shipping that we should add taxes for the shipping address.
Is this correct??
I hope somebody knows about it and answer this legal things.
Thanks.

#7 dreamscape

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Posted 04 February 2004, 05:05

Different states have different laws (for example some require that you charge sales tax to everyone, no matter where they are from). Contact your local Chamber of Commerce and they should be able to assist you with your local and state tax laws.
The only thing necessary for evil to flourish is for good men to do nothing
- Edmund Burke

#8 Mibble

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Posted 04 February 2004, 05:14

safest bet, contact the state tax board

#9 charly5

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Posted 05 February 2004, 13:58

Unless in spain you must have the taxes acording with the billing address.

I mean, if you pay something you get the bill with the corresponding taxes, it is not importan where you or some one else will enjoy this product.

So I think that if we want to make a correct bill we will add the taxes corresponding to the billing address.

Best regards.

Carlos

#10 compuworks

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Posted 19 February 2004, 19:36

You have to collect tax based on final destination ... In Ohio if we take your money here and ship to another state we do not collect the tax.

if we ship inside Ohio we have to collect sales tax
CompuWorks
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#11 mattt

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Posted 16 March 2004, 18:21

Hello
regarding this question, i have another, regarding taxes only
here in europe, and in france, we have 3 selling taxes
one for inside france 19.6 %
one for inside europe, except france 5.5 %
one for outside europe -free tax-

is it possible to set this ?
is it working regarding user billing country ?

because i created 3 test zones, but when create new product in catalog, it cannot be automaticly selected regarding user location

must i create any product for any taxable zones i have ?

thanks

#12 J_S

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Posted 18 March 2004, 00:58

Hi Mattt,

Check this thread:

http://forums.oscommerce.com/index.php?showtopic=76315&st=0

it will answer your question for shure! ;)

Edited by J_S, 18 March 2004, 01:00.


#13 mattt

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Posted 18 March 2004, 07:05

thanks ;)
but i solve my question by myself
i didn't work with zones, and taxes zones, so created a zone, and understood how it works

but it's very long, because in my situation, i have 3 zones, france, europe, and other
for france, i put france, for europe i put 24 other countries, and for "other" i have to manually put all other countries ...
very long, but it works well

#14 dreamscape

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Posted 18 March 2004, 07:51

iiinetworks, on Dec 23 2003, 06:49 PM, said:

2.  If you go to another state and buy an item, do you pay sales tax?  You bet you do, because it is "shipped" to your location (i.e. the store where you are buying it).  Why should mail/internet sales be different?
If you goto another state and purchase something in a physical store, all customers pay the sales tax because that store has a presence in the state (created a nexus) and is obligated to collect & pay sales tax from all customers who purchase from within that location. It has nothing at all to do with where you personally are from or how the goods got to that store.


The laws generally do not say shipping & billing addresses, etc, but most times refer to the customer. From what I have seen, the general rule (in the states) seems to be if the customer is from your state, they pay sales tax, just as if you had a store and they were coming in to buy. (now again, each state differs and some differ alot). To me this signifies the billing address in the case of most states. The person buying the product (ie the billing address) is the customer.

Edited by dreamscape, 18 March 2004, 07:53.

The only thing necessary for evil to flourish is for good men to do nothing
- Edmund Burke