Configuring Sales Tax at Walmart.com is not a mandatory step but a recommended one. In other words, letting Walmart handle the collection of taxes with its pricing algorithm can help you beyond expectations, and in just a few steps. Hence, you need to go through a minimal steps procedure and set up the taxes and nexus states before selling on Walmart.com. Also, explore further to find out, how much is sales tax at walmart.com. But before anything, learn the two possible methods of, “How to Configure Sales Taxes at Walmart.com?” Walmart Sales Tax is a really small and easy portion of your onboarding and selling on Walmart experience.
In the following sections, you can find:
- How to Configure Sales Taxes at Walmart.com
- Essentials of Walmart Sales Tax
- How does Walmart calculate Taxes?
How to Configure Sales Taxes at Walmart.com
While Onboarding:
- First Step: Finish up to the Tax Info stage of Partner Profile during Onboarding.
- Second Step: Go to Tax Info. Be prepared with a list of your Nexus States, Tax ID, and shipping tax ID as well as a Legal Sales Tax Policy.
- Third Step: Enter the States where you are obligated to remit Sales Tax to, as well as the states where Walmart is obligated to collect tax from as per the local laws.
- Fourth Step: Enter Tax IDs corresponding to different Shipping Options available. Leaving one will imply that you do not want to collect tax from that shipping method.
- Fifth Step: Fill in your Tax Policy. Consult a Legal advisor for the best framing of a Sales Tax Policy for all your business practices.
While Updating:
- First Step: Log In to Walmart Seller Center if you want to update the Sales Tax Settings
- Second Step: Go to General Settings then Partner Profile. Be prepared with a list of your Nexus States, Tax ID, and shipping tax ID as well as a Legal Sales Tax Policy and click on Taxes.
- Third Step: Enter the States where you are obligated to remit Sales Tax to, as well as the states where Walmart is obligated to collect tax from as per the local laws.
- Fourth Step: Enter Tax IDs corresponding to different Shipping Options available. Leaving one will imply that you do not want to collect tax from that shipping method.
- Fifth Step: Fill in your Tax Policy. Consult a Legal advisor for the best framing of a Sales Tax Policy for all your business practices.
Thus, you can follow the steps and finish configuring Sales Tax at Walmart.com.
Moreover, the reason why letting Walmart tackle your Sales Tax is the smart choice is because Walmart uses a tax engine that calculates tax on your behalf whenever an item is sold. Also, the sales engine takes into account any sales tax changes.
Sales Tax Configuration Set up Process
Follow the process given below to successfully set up tax configuration settings:
Essentials of Walmart Sales Tax
In order to configure Walmart Sales Tax, you should know what essential information is required. Thus, here is a list of Terminologies involved in the configuration process.
1. Nexus
The Nexus State is a state where a business has tax obligations as per the laws of that state. While filling Tax details during the onboarding process, you are required to file in the states where you have the obligations. In order to understand the obligations, it is highly recommended to consult a Legal Tax Advisor.
While you need to file in the Nexus states at the time of onboarding, it is not limited to just a one-time fix. You can most definitely, come back anytime and update the settings as per any change in the existing laws.
Thus, Walmart provides complete support in collecting Taxes by calculating the price and tax applicable, for you and your customers. All you need to do is let them know where your obligations stand.
The Compulsory State
There are states where Walmart is liable to collect taxes in spite of your preference as per the jurisdiction of the said states. These are by default selected when you open the Nexus settings.
Here are the states, you cannot forgo:
| State | Code | State | Code |
| Utah | UT | Minnesota | MN |
| Texas | TX | Washington | WA |
| Nevada | NV | Connecticut | CT |
| Massachusetts | MA | Iowa | IA |
| Maryland | MD | Oklahoma | OK |
| Maine | ME | Pennsylvania | PA |
| Colorado | CO | South Dakota | SD |
| California | CA | New Jersey | NJ |
| Arizona | AZ | Alabama | AL |
| Ohio | OH | District of Columbia | DC |
| Wyoming | WY | Nebraska | NE |
| West Virginia | WV | South Carolina | SC |
| Vermont | VT | New York | NY |
| Virginia | VA | Idaho | ID |
| Rhode Island | RI | Arkansas | AR |
| North Dakota | ND | Indiana | IN |
| Kentucky | KY | New Mexico | NM |
Now there are taxes corresponding to products and shipping methods as well.
2. The Shipping Tax Code
The codes corresponding to every shipping method that Walmart allows, are filled here. It helps Walmart in understanding what is to be charged for shipping the products. Walmart expects four different Tax codes related to four different shipping methods ever since July 2013.
Since sellers are obligated to pay the sales and shipping tax, it is better to provide as elaborate detail as possible. Leaving it behind now will affect the sales and profits later. If you select an incorrect tax code for any of your products, customers may be charged a higher or lower tax. Thus, it is advisable, that you consult a tax advisor and select the most fitting Shipping Tax code and fill them appropriately.
The codes are:
| Codes | Shipping Method |
| 2038345 | Common Carrier |
| 2038346 | Common Carrier where customers can choose to avoid Freight Charges. |
| 2038349 | Contract Carrier |
| 2038351 | Directly by Seller using his vehicle |
| No Code | Seller does not want Walmart to collect Tax on Shipment and is responsible for the remission of tax himself. |
If you want to understand the possible shipping methods while selling on Walmart you can check out How to sell on Walmart Marketplace: A Complete Guide.
3. Sales Tax Policy
This is a Compulsory Stage where you must provide a Tax Policy for Walmart Customers. It helps Walmart customers in understanding your tax policies and rules. There is a limit of 4000 characters in this section. Also, URLs or links to other websites are not allowed in the Sales Tax Policy.
Make sure you consult a Legal advisor, catch up on all and most recent Laws in your states and States in which you intend to sell.
Also, there are Solution Providers that help you with Sales Tax and other such legalities. Please know that your Policy declaration is actually a disclaimer. It should abide by laws.
How much is sales tax at Walmart.com?
Before you let someone handle your sales Tax at Walmart.com, even if it is Walmart itself, it is essential that you know what you are signing up for. And how good it is actually.
How does Walmart Calculate Tax?
Walmart executes its Algorithm for price calculation and Tax counting for the customers at the time of check out. The prices and taxes are calculated based on the state of the customer and seller, local and state laws, as well as the Sales Tax Policy of that Seller.
Whenever a new law is passed in any of the jurisdictions, Walmart updates its Algorithm accordingly and presents the customers with the right amount of taxes immediately, so that your overall sales and profit remain safe.
Nonetheless, keeping up with the Tax Laws and amendments in states of your customer base is a good practice. You can also let solution partners keep you up to date on the matter.
Furthermore, how much is sales tax at Walmart.com is a subjective question. The amount of tax charged remains subject to the type of product purchased, gifting, wrapping, processing, type of seller registration, etc.
Gift Cards or Charity Cards sold at Walmart are Tax Exempted. There are certain categories of product which are tax exempted, others have strict tax guidelines.
To aid in defining which products are taxable and by how much, Walmart provides a sheet of Taxware Tax codes that contain the most recent tax codes corresponding to the products. You can consult this sheet during the time of Listing and get it out of the way from the start.
To get this sheet, you must follow the path as:
All in All
Moreover, you can charge taxes in two ways:
- Let Walmart handle the collection of taxes by configuring Sales Tax at Walmart.com.
- Incorporate taxes in the Cost of the Product itself and then remit taxes to the state later.
If you want to handle Walmart sales tax by yourself, configuring sales tax at Walmart.com is not mandatory for you. But of course, if you want to reduce your work, follow the steps under how to configure sales taxes at walmart.com and rest easy.
When you let Walmart handle the Taxes, it saves you from a lot of calculations and risks involved in wrong calculation or remodification during a change in the law.
No matter what you decide, you must provide a Sales Tax Policy at the time of onboarding.
There are states where Walmart has obligations to collect taxes in, hence they are compulsorily added in your Nexus State.
No matter what, consult a Legal advisor and let them help you in abiding by the tax laws.
For more on how to sell on Walmart, check out:
- How to get started and sell effectively on Walmart Canada [WEBINAR]
- 6 Simple Steps to Become a Seller on Walmart in 2019
- How to advertise on Walmart[Sponsored Ads]: Get Targeted Traffic
- 4 Awesome Ways to Increase Sales Volume on Walmart
- 4 Reasons that can get your Walmart Account Suspended