BigCommerce is a widely used ecommerce platform that allows businesses to sell products online across the United States and globally. While BigCommerce simplifies online sales operations, businesses selling nationwide must also manage sales tax compliance.
As ecommerce stores expand into multiple states, companies must determine where tax obligations exist, calculate tax during checkout, and report sales tax to state authorities.
Sales tax automation tools integrate with BigCommerce to help merchants monitor economic nexus thresholds, calculate accurate tax rates, and track multi-state revenue.
Businesses unfamiliar with automation platforms should begin with this overview: Sales Tax Automation Software Guide.
How BigCommerce Sales Tax Works
BigCommerce includes built-in tools that allow merchants to configure sales tax settings during checkout.
These features allow businesses to:
- collect tax on transactions
- configure state-level tax rules
- generate basic tax reports
- apply location-based tax settings
However, managing tax settings manually becomes difficult as stores expand into multiple states. Sales tax automation platforms help simplify this process.
Economic Nexus and BigCommerce Stores
Economic nexus laws require businesses to collect sales tax once they exceed certain activity thresholds in a state.
Typical thresholds include:
- $100000 in annual revenue
- 200 transactions within a state
BigCommerce merchants selling nationwide may reach these thresholds quickly. Businesses can review nexus thresholds across states here: Economic Nexus Thresholds by State. Companies unsure whether nexus exists can estimate exposure using: Economic Nexus Calculator.
Inventory and Warehouse Nexus
Many BigCommerce businesses store inventory in warehouses or fulfillment centers. Inventory stored in another state may create physical nexus even if the business does not operate an office in that state.
Examples include:
- third-party logistics warehouses
- regional fulfillment centers
- Amazon FBA storage
- distributed inventory networks
More details about warehouse nexus are explained here: 3pl Warehouses and Sales Tax Nexus.
Automating Tax Calculations on BigCommerce
Sales tax automation platforms integrate with BigCommerce to calculate tax automatically during checkout.
These integrations allow merchants to:
- apply accurate tax rates during transactions
- determine tax jurisdiction using shipping addresses
- track multi-state revenue
- monitor nexus thresholds
Automation helps ensure the correct tax is collected for each order.
Tracking Revenue by State
Monitoring revenue by state is essential for identifying when economic nexus thresholds have been exceeded.
Businesses using BigCommerce should track:
- revenue generated in each state
- transaction counts by jurisdiction
- taxable vs non-taxable sales
More information about revenue tracking is explained here: How to Track Sales by State.
Sales Tax Reporting for BigCommerce Merchants
Once nexus exists in a state, merchants may be required to register for sales tax and file tax returns.
Sales tax automation platforms help generate reports summarizing:
- total sales
- taxable revenue
- tax collected
- sales activity by jurisdiction
These reports help businesses prepare tax filings. More details about compliance risks are explained here: Sales Tax Exposure Guide.
How TaxMap Helps BigCommerce Merchants Identify Nexus
TaxMap helps ecommerce businesses analyze sales activity across states and determine where tax obligations may exist.
The platform helps merchants:
- identify nexus exposure
- monitor economic nexus thresholds
- track multi-state revenue
- evaluate compliance risk
Businesses can estimate nexus exposure using the economic nexus calculator.
Check Your Economic Nexus Exposure
Similarly, hiring across states can impact compliance-learn more in Remote Employees and Sales Tax Nexus.
