This article examines the 4 popular WooCommerce sales tax plugins and includes links to each vendor.
In a 2018 Supreme Court ruling, online retailers can be required to collect sales taxes in states where they do not have a physical presence. This presents many complications as sales tax codes can be unique, convoluted, and annoying. The good news is that WooCommerce offers solutions that are free or paid.
Top 4 Sales Tax Plugins for WooCommerce
The following WooCommerce sales tax plugins are generally easy to install and require very little setup on the WooCommerce side. Generally, the setup will be done with the vendor to determine how and when sales tax will be collected. The vendor will charge a fee for this service, and may include filing and consultation.
However, if a free solution is preferred, Automattic offers an automated tax solution through the WooCommerce Services plugin. Note that this plugin requires Jetpack for WordPress to also be installed. If you have been data entering the tax rates into WooCommerce manually, this plugin would automate the process.
With that said, let’s take a look at what WooCommerce has to offer for these sales tax plugins.
1. Avalara AvaTax
Avalara has joined up with WooCommerce to introduce Avalara Avatax. This sales tax plugin allows the proper calculations of sales taxes, based on geo-spatial mapping. Each transaction will precisely provide the sales tax at the time of check out. Accuracy is guaranteed and your stress is sure to diminish over this complicated system. Audits and automation are also part of the package.
For this plugin, you can pay based on the volume of transactions your company produces. There’s a 60-day money-back guarantee to ensure your happiness.
Download Avalara AvaTax
TaxJar is another WooCommerce plugin that provides monthly updated tax rates to ensure you are collecting proper tax totals from your clients, including Canadian customers too. Reports can be generated without manually calculating a single transaction.
For an additional fee, TaxJar offers the ability to auto file your state sales tax return every month, quarter and year.
TaxJar also lets you enjoy a free 30-day trial with no credit card required to try. There are no contracts or activation fees to meddle with. They maintain over 10,000 tax rates and update them automatically.
Quaderno sales tax plugin integrates into WooCommerce and helps collect real-time sales tax worldwide, following local tax laws specific to the customer’s country. An automatic tax receipt is generated for each sale and is available to the customer in multiple languages and currencies. Quaderno assists with tax filing and offers extensive reporting with an easy-to-use dashboard.
Download WooCommerce Quaderno
4. Simple Sales Tax + TaxCloud
Touting the internet’s only free sales tax compliance service, TaxCloud offers a full tax management solution.
When using Simple Sales Tax by TaxCloud, you are receiving accurate sales tax calculations in real-time, on the cloud. Reports can be generated, and currently, they offer to file your sales taxes in 24 states.
Paid accounts are made available to those businesses wishing to only do business in a few states, for as little as $9/month. The setup is easy, the reports are detailed and updates can be made with one simple click.
Final Thoughts: WooCommerce Sales Tax Plugins
Whether or not you agree with the Supreme Court’s ruling to charge online businesses with state taxes, there are a host of companies that have created easy-to-use plugins for WooCommerce. Each one claims to properly calculate sales tax in most states and jurisdictions with the ability to file and generate reports. It will be up to you to determine what is user-friendly and adequate for your business.
Need help? Our WooCommerce Development Service is a complete solution for new or existing WooCommerce websites, and we can help you install and configure the sales tax plugins reviewed in this article. Call us at 602-633-4758 for a free consultation.