TAX only for SOLD TO location not SHIP TO

[kr_rice02]

Hello! I am having trouble with a client's shop...it seems to be that customers are being charged sales tax based on where the item is being shipped to as opposed to where the item is being sold.

 

i.e. A customer in Texas buys a product and ships to Ohio (store location) and they are being charged sales tax, which I believe is incorrect. The only people who should be charged sales tax are those residing in Ohio.

 

Anyone have any suggestions as to how to remedy this? Or how this occurred to begin with?

 

Help is MUCH appreciated! Thanks!

 

Kristen

[Shadoglare]

Actually I believe it's correct in the way it's behaving now -

If I remember my tax codes correctly from the couple of states I've dealt with them in, products are taxed based on where the "exchange of goods" happens, not where the money came from.

In the case of mail-order folks, the "exchange of goods" happens wherever the package ends up after shipping.

 

Thus, if it's shipped to the state you do business in, regardless of what state the credit card that paid for it was in, there will be sales tax applied.

 

Of course I don't know for sure that's fully accurate for Ohio, but I suspect most states likely do it similarly.