Set tax rules

Configure tax rules so we charge correctly. Set up sales tax collection for our home state at 7.25 percent, enable automatic tax calculations for other US states based on destination, exempt digital downloads from sales tax, ensure tax displays as a separate line on invoices, and run two test orders — one taxable physical item and one tax-exempt digital item — to demonstrate correct tax handling.

Before I give this to finance for sign-off, make the tax presentation audit-proof: show the tax jurisdiction on the invoice, surface why a digital product is tax-exempt in plain language, flag any products without a tax class, and list states where automatic calculation needs manual override or vendor registration.

I set digital downloads to be tax-exempt, but a test purchase of an e-book still calculated sales tax. Finance needs accurate invoices for our accountant and I don’t know whether the plugin tax class or the product’s shipping setting is causing this. What is the most likely cause and what exact checks and fixes will resolve it quickly?

Every quarter we find products taxed incorrectly and scramble to update settings and reissue invoices. The recurring issues are misapplied tax classes, missing nexus registrations, and no deployment checklist. What operational changes and a minimal pre-launch tax checklist would stop us reworking invoices at filing time?