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Yes.  The old way worked.  The new way is problematic and a potential show stopper.   Not until attempting to pin down requirements for a client's e-commerce solution request was this problem issue exposed.  In order to get the facts straight on the subject, due to so much misinformation found, it was necessary to go straight to the Supreme Court and read it for myself.  Then, visit State governments and examine their current tax law; note, New Mexico does not have a sales tax, they have a gross receipts tax; different terms, same impact.   Reading the final descending opinion of the Supreme Court decision, of the case that caused the change, merely scratched the surface on the impact this has on all Interstate business; not just e-commerce.  The favorable opinions indicated their were companies, in 2018, already working on developing solutions to satisfy requirements of the change of the law; they even identified one in one opinion.  It didn't pass muster in my professional opinion; you still have the item category issue yet to be addressed (time for placing some parties under the magnifying glass quite possibly).   The simple solution is to encourage Congress to act.  It is they whom govern Interstate Commerce; not the Court; they as such, right in the Court's opinion.  Apparently, congress people rarely read the Supreme Court's opinions it would appear.  And, most are not technically savvy enough to grasp complex technical issues; as the defendant's legal team also lacked the technical expertise to describe this problematic issue for The Court, in order for them to comprehend what they were about to do, and did do.   My client is forced to use the invoice method to be in full compliance.  Their State's API to derive Sales Tax Rate base on Shipping Address, runs into Access Control issues on most web browsers currently and invoking it from the web server exposes a series of security issues.  This means, my client is back to using 1996 technology to achieve 100% compliance.  Fortunately, the client is a scientist familiar with government double talk, so at least in this instance the client relationship was only tried, but not destroyed.  How many other professionals have suffered loss of business as a result of demanding full compliance in order to satisfy client requirements?  More than two, is too many.   One thing to keep in mind, back in the 1990's the public began to learn of something referred to as the Internet and something called the Wide World Web.  This caused business to boom to capitalize on the prospect of selling products all around the world, but the "Dot Com" bubble burst.  Realities had not been considered.  Implementation of the Supreme Court's current Commerce Guidance for Interstate transaction, when augmented with support for item categories, what do you get?   You get the World Wide Web and the ability to sell products all around the world.  That is precisely what you get.   So, all things considered, not so terrifying after all, is it?  Implementing a solution is a current problem for many, if not most and without doubt a resolution shall be forthcoming.  Why?  Because, everyone wants to make MONEY;-) ... View more

United States Sales Tax calculation changed significantly since changes occurring in 2018 as a result Supreme Court's decision of South Dakota v. Wayfair, Inc..  Previously, the "nexus" was business address and/or whether the business had a physical presence.  This changed.  The previous PayPal Sales Tax auto-calculation was designed and developed for use based on the old Sales Tax Law; and, can sometime be used in some now unique circumstances, but be aware, some zip codes include multiple tax jurisdictions with different tax rates.   Calculation based on shipping address is complex; now, given there are reportedly between 11,000 and 13,000 different tax jurisdictions just in the United States, each having their own unique laws and rates, which change frequently.   Today, United States Sales Tax is determined by where something is delivered and/or used.   This means, each transaction must be qualified based on the State Sales Tax law where the item is shipped or picked up (and implicitly used).  Typically, and fortunately, many small businesses may benefit from newly added Sales Tax Exemptions based of sales volume and 12 month dollar amounts; however, each State is unique and may adjust/eliminate those exemptions at any time, along with their tax rates.   Important: Each State taxes sales differently; some not at all.  It is required by law to have a registered permit from a State prior to collecting Sales/Use Tax for it.  Remember, the business doesn't pay Sales/Use Tax, the customer does; the business merely collects, reports and remits them to the applicable State (which is an unreasonable burden placed on most businesses; hence, the temporary exemptions implemented in most States).   Should PayPal offer automatic sales/use tax calculation base on shipping address, it'll be fantastic; requiring regular monitoring of all Sales Tax Jurisdictions (all 13,000 and growing).  Also, by advised, there are States with no Sales Tax, but locations with Sales Tax in them; i.e., Alaska.   A solution may exist using the OnShippingChange, then invoke an external API to obtain an accurate tax rate, but then you venture into product item categories where State Laws differ significantly.  Is there a technical solution to this problematic issue?  Personally, my assessment thus far is, no there is not.  Achieving 100% compliance currently is a very real challenge, making it extremely difficult to provide e-commerce solutions to clients large or small. ... View more

In 2018, the United States Supreme Court made a decision to declare a previous decision unconstitutional, altering 1988 Sales Tax Law too no longer be based on a business’s address, but instead the address where an item is shipped/used; one of 11,000 tax jurisdictions in the United States, with each State having their own unique Sales Tax Law. To collect Sales Tax from a customer, a permit is required to be secured first from each State that tax the particular item category, then the collected tax must be reported and remitted to each State at periodic times. Some States offer exemptions with thresholds. See USSC South Dakota v. Wayfair, Inc. 2018 for the change of Commerce Code Guidance of the Supreme Court. Some States offer API’s to get sales tax rates based on address; however, now it’s necessary to be aware of all United States different Sales Tax Laws, as some tax shipping, others do not, some tax handling, some do not. Most importantly, do not collect taxes for a State without a permit for that State. Good luck. Oh, one other thing, be aware, some of the 11,000 different tax jurisdictions share the same zip code with other tax jurisdictions, with different tax rates within the same zip code. All this makes automatic Sales Tax Calculations much more complex than it was when Sales Tax was based on business address. Sales Tax is now based on where the item sold is delivered and used, and this is why you’ll now see it referred to as “Use Tax”, or VAT (Value Added Tax); applied to Interstate commerce; e.g., telephone sales, catalog sales and Internet sales. There’s a significant amount of incorrect information respecting Sales Tax, so rely on each State’s government sites for reliable information. ... View more