We could use a sales tax menu that automatically applies sales tax based upon a few criteria.

We can define types or classifications of sales tax.

We can assign to delivery zipcodes, delivery zones as a whole, or a combination.

Then of course we can set the rates.

The product side would add the option to select the type or classification of sales tax on that item and the sales tax system would take over and determine any sales tax at checkout.

From this menu/system, it would also be able to generate reports for received sales tax and the taxable sales for each zone/classification.

This would permit us to assign and report sales tax by their proper areas, while leaving our delivery zones as they are for the shipping we have and how we handle shipments.

So For our use case, We could set:

TN Grocery for our area is 6.25%

TN General is 9.25%

Then we could set that up for Virginia and other states/zones or even by the city if we are required to do that.

We're not at the threshold just yet to collect taxes in most states besides our own, but as things grow, this is a pretty sizable concern and liability on us. And the current reporting system has plenty of issues and doesn't differentiate taxes collected nor report the actual PAID sales by zone.