Currently using virturemart 2.0 to setup an online clothing store. Since our business is based out of Washington State we have to collect sales tax based on the buyers location. I have searched hard and long on this and haven't been able to find a solution. Currently in VM2 I can only setup sales tax based on state and not region or zip, I need this functionality and am willing to pay to develop it if it isn't around. Is there an add-on or module that I need to install to get around this. There has to be a work around for VM2 out there somewhere I can't be the only company that is having this same issue. Please let me know how I can solve this problem.
In tax settings you can choose usa as country and then in the next line a state like Alabama. Is this not enough?
Look at the use of the included VM Avalara Tax plugin - this appears to do exactly what you want. The tutorial is on http://docs.virtuemart.net/tutorials/28-plugins-payment-shipment-and-others/75-configure-avatax