Food Hubs
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Sales Tax on Retail Online Sales
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Sales Tax on Retail Online Sales
Hi all, Like many we have added online ordering. In response to the Pandemic in 2020, we added a CSA type program direct to consumer purchased as a subscription. The challenge for online retail sales in our area is collecting the sales tax specific to the multiple cities and two states our market encompasses. It is onerous to set the tax for each transaction based on city/state. We use Local Food Marketplace. Does anyone here have any solutions that worked for them? Or what did not work? Your input is much appreciated. TK
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Hi TK, yes we have the same problem with our multiple tax jurisdictions. It’s a weak point in LFM. We have had one site that is taxed and one that isn’t, so we’ve only had to set the main tax rate and make the other site exempt. There’s an option for “National” sales tax (funny, wonder how they came up with that), so you theoretically could have two tax rates. Otherwise I’m not sure what to do and we may now have the same problem since we’re adding pickup sites this year. It’s an area of the software that hasn’t been well thought out. Ideally you should have the ability to make an infinite number of tax rates, and attach those to customer locations. I think we might have to add the tax rate into our markup/margin in order to collect, which is a bummer because it’ll raise the list prices, and I think it’s not legal. Let me know if you come up with anything else!
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