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. WooCommerce is not considered a Marketplace Facilitator, so sellers on this platform are responsible for collecting and remitting sales tax.  

WooCommerce retailers are responsible for collecting and remitting sales tax on applicable orders. The platform does not handle sales tax collection or sales tax settings for sellers. Before enabling tax collection for your online store, it’s important to evaluate where you have sales tax nexus and whether your products are taxable in those jurisdictions. 

Getting Started with WooCommerce Sales Tax

1. 1. Complete a thorough sales tax nexus review for both physical nexus and economic nexus.
   2. Register necessary sales tax account.
   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 account.

WooCommerce provides online sellers the option to enable sales tax collection either manually or automatically using the WooCommerce Plugin or a third-party plugin. The best option for your online store depends on the products you sell, and the jurisdictions that you have a responsibility to collect and remit sales tax.