Walmart Tax Code: How Sales Tax Works on Walmart.com
Whether you are a new Walmart supplier or beginning your business on Walmart Marketplace, just getting set up can be overwhelming. Among the details of item descriptions, images, and shipping information, one critical detail is essential in staying compliant: configuring sales tax for Walmart.com transactions.
Read on to learn how sales tax works at Walmart, how the company can calculate it for suppliers, and where suppliers can find more information for setup and updates.
How Sales Tax Works at Walmart
Every Walmart store attaches the sales tax to products ordered online. These products include purchases fulfilled from a physical Walmart store or distribution center as well as products purchased and shipped from a Walmart Marketplace seller. Because Walmart has locations in every state, all transactions are legally subject to sales tax.
While configuring sales tax for online transactions is not a mandatory step when setting up an account to sell on Walmart.com, it is heavily recommended. Walmart can handle the collection of taxes for suppliers through its pricing algorithm. This is an option suppliers can select during their initial setup with Walmart.com or when updating their account at a later time.
The price and tax calculation is based on the state of the customer and seller, the sales tax policies of the seller, and local and state laws. The exact amount of tax charged is subject to the type of item in each transaction, packaging, processing, seller registration, etc.
Tax laws can change in each state or jurisdiction frequently. When this happens, Walmart will update its pricing algorithm. This ensures its customers are paying the correct tax on purchases and the suppliers’ sales stay compliant.
If you are preparing to set up an account to sell on Walmart.com, check out our blog How to Sell to Walmart: Get Your Product in Walmart in 4 Steps.