Some online platforms used for selling products are considered Marketplace Facilitators. This means that the platform is responsible for collecting and remitting sales tax. This removes the responsibility to collect and remit sales tax as a seller on those platforms. Adobe Commerce is not considered a Marketplace Facilitator, so the sellers who use their software must configure the platform settings to collect sales tax themselves. You can find more information on how to do this under the Sales Tax Collection header. 

As Adobe Commerce does not collect taxes for retailers, retailers must set up the proper tax rules for their business(es) and products in Adobe Commerce’s store settings. However, the first step every retailer should take before setting up and enabling tax collection is determining where they have sales tax nexus and whether their products are taxable in those jurisdictions. Here is how: 

Getting Started with Adobe Commerce Sales Tax: 

1. Complete a thorough sales tax nexus review for both physical nexus and economic nexus. 
2. Register necessary sales tax accounts. 
3. Obtain sales tax certificates. 
4. Enable sales tax collection on all required platforms for the registered jurisdictions. 
5. File sales tax returns and maintain sales tax accounts. 

Four tax classes are used on Adobe Commerce to decide the taxable rate of a product: shipping, gift options, product and customer. These four tax classes together determine the Tax Rules used for any retailer or store on Adobe Commerce. This ecommerce site also uses advanced display settings unique to your preferences, one prime example being whether a customer can view tax on a product display page. All these configurations and more play into how much tax is collected. There are two ways to decide Tax Rules on Adobe Commerce: 

1. From the Admin sidebar, choose Stores > Settings > Configuration or 
2. Install Vertex as an additionally priced extension to aid in tax calculation.