For example, there are about 43 different counties in California. The
sales tax rate in each is a little different from the next (7.25%, 7.5%,
8.0% etc.) If you are delivering the goods into a given county, you must
use the correct tax rate for that county and be able to submit the sales
tax collected to the correct county at the end of the month.
In Canada, the system can handle the Provincial Sales Tax, Goods and
Services Tax, and several different Environment Taxes. Currently, the
law states that if you sell goods into Quebec from another province you
must collect the Quebec sales tax, but enforcement of that law is still
an issue.
We also deal with the complex
Australian sales taxes which can be hidden or not, or different rates
or not, or can be exempt or not, depending upon what you have negotiated
with the government agent. We've solved this problem by putting the sales
tax rate on each item and have added some very tricky programming.