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Bigcommerce and Sales Tax: 3 Things You Need to Know

  • Jan 31, 2016 | Avalara

Looking to launch an e-commerce store? Bigcommerce serves as an all-in-one e-commerce store builder that powers many new and established brands.

With Bigcommerce, online merchants can "sell more and scale faster," according to the company. In addition, recent data indicates that its customers are growing nearly twice as fast as the e-commerce industry average. But why?

Well, for one thing, Bigcommerce offers more than 100 features right out of the box, including:

  1. Modern themes – Enable merchants to create eye-catching online storefronts
  2. Single-page checkout – Allows merchants to improve conversions by an average of 12 percent
  3. Desktop and mobile previews – Empowers merchants to develop first-rate storefronts before launch

But Bigcommerce has other advantages that might not be as obvious -- having to do with sales tax management. Here are three things you need to know about Bigcommerce.

1. Bigcommerce automatically configures sales tax

Bigcommerce automatically configures sales tax if your business does not have any special tax needs.

U.S. merchants can enjoy automatic US state sales tax calculation that determines sales tax rates during checkout based on a standard tax rate for states in which these businesses are required to collect sales tax. And for merchants who require any special sales tax exemptions, an Avalara AvaTax integration streamlines the tax collection process.

AvaTax serves as an automated end-to-end tax compliance solution that provides Bigcommerce users with a "one-and-done option for nexus and taxability requirements in all states." It uses real-time tax rate calculations and calculates sales tax via geo-spatial mapping, ensuring accurate results every time. Plus, flow-through data from Avalara AvaTax Calc to Avalara AvaTax Returns ensures a merchant's sales tax returns are always on time.

2. Configuring your sales tax is quick and easy

It's no big problem to configure your sales tax with Bigcommerce, even if you need to account for special exemptions. Within minutes, a Bigcommerce user can configure sales tax settings quickly and easily. Simply click on "Settings," then "Store Settings," followed by "Tax." You'll be able to configure the tax options in a number of ways.

Sales tax options include:

  1. Tax labels – Displays tax labels throughout an online store.
  2. Prices with or without taxes – Allows merchants to enter prices inclusive or exclusive of tax.
  3. Shipping tax class – Sets the tax class that should be used to calculate tax for shipping costs.
  4. Calculate tax based on – Controls sales tax based on a customer's billing address, shipping address, or store address.
  5. Gift wrapping tax class – Chooses the tax class that taxes for gift wrapping applied to products.

These options can be applied quickly and can be updated at any time.

3. You'll be covered on Internet sales tax

Bigcommerce enables you to future-proof your store for Internet sales tax. Today, merchants are required to collect sales tax in states where they have a physical location like a storefront or warehouse. However, the Marketplace Fairness Act, aka the "Internet Sales Tax Act," could change things quickly for online retailers.

The Marketplace Fairness Act would require merchants to charge tax in every US state. Fortunately, Bigcommerce helps with compliance if and when this proposed legislation becomes law.

Ultimately, Bigcommerce provides a valuable option for both big and small businesses that want to launch online storefronts. Bigcommerce helps companies simplify their sales tax management, ensuring these businesses can spend less time worrying about sales tax and more time focusing on their marketing and sales efforts.

Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
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