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Sales Tax rates vary by the address and don’t apply to some goods/services. Additionally, some states have holidays (like “back to school no sales tax days”).
by thephyber 3y ago
Sales Tax rates vary by the address and don’t apply to some goods/services. Additionally, some states have holidays (like “back to school no sales tax days”).
That is to say that the retailer needs the recipient’s address before shopping, rather than after. Also, if sales tax is handled by an external API call, those costs would increase drastically if the same call must be made for each product listing price, as opposed to just a few at the end of checkout flow.
- hakfoo 3y agoThe bajillion-jurisdictions problem can be solved on an aggregate basis. Charge everyone $100 inclusive-of-taxes. Keep $93.50 of that from a customer in Phoenix, $92.75 from a customer in Los Angeles, and all $100 from a customer in Oregon. If you have approximate knowledge of how your demand breaks down, you could come up with an all-inclusive price that produces the average bottom-line revenue you want.
- thephyber 3y agoYou seem to be hand-waving away the accounting part and the fact that the subtotals for the same goods will be different for users in different cities. Still not a good user experience.