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Folks who’ve built/run marketplaces – how do you deal with sales tax?

Just to get it out of the way, I know that this is an immensely complex problem to solve and I'm setting up a meeting with an accountant accordingly. That being said, I'm curious if anyone in the community has any experience with this.

In a nutshell, I'm setting up a multivendor marketplace using Woocommerce and WC Vendors for physical and digital products. Users can register for a customer account as well as a seller account to list and sell stuff. Everything's working well…

Now, enter sales tax. The problem: how to collect the appropriate tax for customer A in Florida buying from seller B in Nebraska and seller C in California.

I'm in the beginning stages of calling around to Saas joints like TaxJar and Avalara, but after a few of these conversations what I gather is that they are not cheap (like $10k a year for 1k transactions/month) and not necessarily specifically suited to this problem.

Any tips? How did you end up solving this issue? Thanks in advance for your time and insights.

submitted by /u/speakerjam
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