Your store calculates the tax and collects it at checkout, using WooCommerce Tax. You register with your state and file the returns.
That is different from TPT, where the marketplace collects the tax and sends it in for you. On your own site there is no marketplace in the middle, so that job is yours.
- Does your home state tax digital downloads? Some states do and some do not. If yours does, you can owe tax there from your first sale. Ask your accountant, or check your state revenue department's website.
- Do you sell a lot into any other state? Other states generally come into it only after you pass a threshold of sales into that state, commonly around $100,000 in a year. The exact figure varies by state.
For most sellers starting out, that means one state.
The usual order of things
- Find out whether your home state taxes digital downloads.
- If it does, register for a sales tax permit before you start selling.
- Tell us which states you are registered in. We set up tax collection in the store for those states.
- File on the schedule your state gives you, using the tax report from your store.
We set up the tools. We do not register or file for you, and we are not tax advisers. Confirm each step with an accountant who knows your state.
The longer explanation is in Who handles sales tax if I sell on my own website?
