Odoo does not recommend this approach, and instead recommends using the TaxCloud integration we have made available.

Why?

There are penalties for getting Sales Tax wrong, for not reporting it accurately (summarizing and classifying the amounts) and for not submitting your returns correctly and/or on time.

The full address for each Customer is required to obtain the correct Sales Tax rate and because of the way rates can change based on tax holidays, combining other products in the shopping cart, or even the threshold amount of the total order we recommend having a third party process and summarize and report for you.

TaxCloud provides indemnification in member states (if you use their platform and get audited or fined, they will work to settle things without you being liable for mistakes provided all rates you use were obtained from TaxCloud via the integration).

The potential exposure (financial liability) has substantially increased in the last 5 years as states have acted to impose sales tax on more and more products and/or services delivered in more and more ways. It has exploded exponentially in the wake of the U.S. Supreme Court’s 2018 decision in South Dakota v. Wayfair, which changed the sales tax landscape by eliminating the physical presence nexus requirement as the sole standard for nexus and permitting sales tax nexus based solely on overall sales into the state.

Given how easy it is for Odoo to support sales across state lines, and the economic nexus standards quickly enacted in the wake of Wayfair, Odoo Customers not taking advantage of TaxCloud are extremely likely to under collect and under report sales tax, or make mistakes in the summarization, classification and/or reporting of Sales Tax.

Since it could cause significant legal and financial problems, we don't recommend this approach.