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Answer · Ecommerce (WooCommerce)

How Do You Handle Tax Calculation?

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The short answer

We default to Stripe Tax (0.5% per transaction) for stores under $5M GMV — cleanest setup, auto-files returns in 30+ US states. For complex B2B with exemption certificates or international VAT, we use Avalara ($50-$1,500/mo). Florida-specific quirks (county discretionary surtax) all handled automatically.

№ 01The longer answer

Tax automation is non-negotiable post-Wayfair (2018). Every state can require sales tax collection once you cross economic nexus thresholds — typically $100K in sales or 200 transactions per state. A Tampa store shipping nationally crosses nexus in 8-15 states by year 1 at $1M GMV.

Stripe Tax is our default. It’s built into Stripe (one toggle), calculates accurate rates at checkout based on shipping address, charges 0.5% per transaction (capped at $0.50), and auto-files returns in supported states for $75/state/month. WooCommerce integration: native via Stripe Tax extension. Setup time: 2-3 hours.

Avalara AvaTax for complex scenarios: B2B exemption certificate management, multi-channel sellers (WooCommerce + Amazon + Walmart), GMV above $5M, international VAT coverage beyond Stripe Tax’s 30 countries. Pricing: $50/month base + transaction tiers. Typical $3M mid-market store: $400-$900/month.

Florida-specific: 6% state + 1-1.5% county discretionary surtax (Hillsborough 1.5%, Pinellas 1%, Pasco 1%). Surtax caps at the first $5,000 of any single item. All three tools (Stripe Tax, Avalara, TaxJar) handle this automatically via shipping-address-based rate lookup. Never hard-code rates in WooCommerce’s built-in tax tables.

№ 02Do you handle the tax filing for me?

Stripe Tax and Avalara both offer auto-filing as a paid service ($75-$150/state/month). We set up the technical integration; you decide whether to enable auto-filing or have your accountant file manually.

№ 03What about Florida sales tax holidays?

Handled automatically. The back-to-school holiday (late July/early August) has specific exempt items; Avalara and Stripe Tax both update their tax codes for the window. We verify mapping before each holiday.

№ 04Can you set up VAT for European customers?

Yes. Stripe Tax covers 30+ countries including EU IOSS for low-value imports. Avalara covers 100+ countries with more granular VAT scheme support. Configured at setup.