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How Do I Set Up Automated Taxes in WooCommerce?

Last updated on October 1, 2022 @ 3:30 pm

As an online business owner, you are responsible for collecting and remitting taxes on behalf of your customers. If you sell products or services to customers in different states, you may need to collect and remit taxes in each of those states.

Fortunately, WooCommerce makes it easy to automate tax collection and remittance using the TaxJar plugin. In this article, we’ll show you how to set up automated taxes in WooCommerce.

First, you’ll need to install and activate the TaxJar plugin. For more information, see our article on how to install a WordPress plugin.

Once the plugin is activated, you’ll need to connect your TaxJar account. To do this, go to WooCommerce > Settings > TaxJar and enter your TaxJar API credentials.

Once you’ve connected your TaxJar account, you’ll need to configure your tax settings. To do this, go to WooCommerce > Settings > Taxes and select the ‘Enable Taxes and Tax calculations’ option. Then, select the ‘TaxJar’ option from the ‘Calculate tax based on’ dropdown menu.

PRO TIP: When configuring automated taxes in WooCommerce, be aware that depending on your tax settings and location, you may need to collect and remit taxes for digital products differently. For example, in the United States, some states impose sales tax on digital products while others do not. As such, it is advisable to consult with a tax professional to ensure compliance with all applicable laws.

Now that your tax settings are configured, you’ll need to specify which products are taxable and at what rate. To do this, go to Products > Edit product and select the ‘Taxable’ checkbox under the ‘Tax Status’ section. Then, enter the tax rate that should be applied to that product in the ‘Tax Class’ field.

Once you’ve configured your taxes, TaxJar will automatically calculate, collect, and remit taxes on behalf of your customers.

Conclusion
In conclusion, setting up automated taxes in WooCommerce is a simple process that can save you a lot of time and hassle. By using the TaxJar plugin, you can easily connect your WooCommerce store to your TaxJar account and configure your tax settings. Once you’ve done that, TaxJar will automatically calculate, collect, and remit taxes on behalf of your customers.

Dale Leydon

Dale Leydon

Sysadmin turned Javascript developer. Owner of 20+ apps graveyard, and a couple of successful ones.