This article explains the circumstances under which sales tax will be collected on United States orders processed through the eSellerate system.
As of January 2015, DR MyCommerce, Inc., eSellerate's parent company, is registered to collect sales tax on behalf of the state governments of all U.S. states that have sales tax. In some of those states, sales tax might or might not be collected depending on the contents of the customer's shopping cart. All sales taxes collected by eSellerate are remitted to the appropriate taxation authorities.
Some states only require the collection and remittance of sales tax on orders that contain physical products to be shipped to the customer. In the following states, sales tax will only be collected on physical products:
When a customer in one of these state places an order that includes at least one shippable/physical product, sales tax will be collected on those products. When a customer in one of these states places an order with no shippable items, no sales tax will be collected.
For example, if a customer in one of the above states places two SKUs in the cart and one of them has the Requires Shipping check box selected on the SKU's Advanced tab, sales tax would be collected on that SKU, but not on the non-shippable item.
As another example, if there are no items in the cart that have the Requires Shipping check box selected, but the eSellerate eCD SKU is in the cart, that too qualifies as a physical / shippable product, and sales tax would therefore be collected on the eCD portion of the order in any of the above states.