Taxes & Invoicing
How are sales taxes calculated in USA? Are they supported by Octobat?
There is no federal sales or use tax in the United states. Some cities, counties, transit authorities and special purpose districts impose an additional local sales or use tax. Sales and use taxes are calculated as the purchase price times the appropriate tax rate. Tax rates vary widely by jurisdiction from less than 1% to over 10%. Sales taxes, including those imposed by local governments, are generally administered at the state level. States imposing sales tax require retail sellers to register with the state, collect tax from customers, file returns, and remit the tax to the state. Octobat enables a calculation of sales tax depending on your classification of the product you are selling. You will be able to select states in which you need to collect tax according to the law, for that you should be able to understand and tell in which classification is your product for each state you sell in.