give your business a 2017 sales tax checkup

Give Your Business a 2017 Sales Tax

Check Upwith JENNIFER DUNN of TaxJar

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GOALS FOR TODAY

• Ensure your business is up-to-date on sales tax• 7 steps to a sales tax check up• Resources for help you file future sales tax

returns• Questions!! (use the chat section to the left)

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QUICK INTRO:● Chief of Content & Community at TaxJar

● Writes the TaxJar blog

● Not a CPA; 8 years experience in eCommerce tax

● Talked to thousands of online sellers, pros, auditors, states

● Here to help you make informed decisions

Why does your business need an annual sales tax check up?

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WAIT! WHAT CHANGES?

Potentially…

• States where you have a sales tax obligation (“nexus”)

• Your sales tax filing frequency• Your sales tax deadlines• State sales tax rates• Product taxability• Your sales channels

Time for a sales tax check up!

STEP 1: DOUBLE CHECK NEXUS

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NEXUS IS WHEN/WHY YOU CARE

A presence / connection in a state that’s significant enough for you to be

required to comply with their sales tax law

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

NEW AMAZON FBA STATES FOR 2016

● Georgia● Illinois● Kansas*● Massachusetts● Ohio

Full list: http://blog.taxjar.com/amazon-warehouse-locations/

IT’S NOT OVER YET

• Fulfillment is a differentiator

• Amazon is investing in infrastructure

• Passage of federal & state legislation will accelerate growth of fulfillment centers

3/2/1619 Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

IF YOU NO LONGER HAVE NEXUS

• Cancel your sales tax permit•Sometimes as easy as checking a box

• Stop collecting sales tax in that state on ALL sales channels

• FBA Sellers: Consider Virginia and Arizona• Caveat: Amazon Fulfillment Centers

STEP 2: CHECK YOUR FILING FREQUENCY

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FILING FREQUENCY: WHAT CHANGES?● Filing deadlines usually tied to sales volume

• The more you collect in a state, the more often you pay• State will sometimes change this up on you

● Frequencies: annual, semi-annual, quarterly, monthly

● Watch for communication from your state

STEP 3: CHECK YOUR FILING DEADLINES

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SALES TAX FILING DUE DATES● Majority of state sales tax due on the 20th after the filing

period

● Other common due dates include last day of the month, 15th, 25th and 23rd

● Frequencies: annual, semi-annual, quarterly, monthly

● Pro Tip: Not all “quarters” are created equal

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JOE IS USING FBA

• AMZN storing his inventory in 5 states• Nexus in 6 states• Complying in all 6 states

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JOE’S DUE DATES

• CA & NV: Due the 31st• AZ & PA: Due the 20th• OH: Due the 23rd

STEP 4: CHECK YOUR RATES

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CHANGING SALES TAX RATES

• Tax rate usually = sum of applicable rates• State• Local• Other (i.e., education, transportation)

• State and local sales tax rates change• January 2017 Examples: CA & NJ

CHANGING SALES TAX RATES

• Amazon FBA Seller? Don’t worry!• Caveat: Unless you use custom rates

• Depends on your shopping cart or marketplace• SmartCalcs Sales Tax API

● Look for communication from your state

FBASALESTAX.COM

FREE ebook that includes the collection settings for every state

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MORE SALES TAX GUIDES

SALESTAX101.COM

STEP 5: CHECK PRODUCT TAXABILITY

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WHAT’S TAXABLE?

• Tangible items are taxable• Common exceptions are clothing and food

• Services are mostly not taxable• Are the tides changing?

• Shipping, gift wrapping can be taxable

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36Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

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37Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

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38Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

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39Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

WHY IS PRODUCT TAXABILITY IMPORTANT?

• Over-collecting: Unhappy customers

• Under-collecting: Unhappy state

• Don’t forget! Shipping, gift wrapping can be taxable

STEP 6: CHECK YOUR SALES CHANNELS

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QUICK SALES CHANNEL CHECKUP

• Be sure you’re collecting in ALL states on ALL sales channels

• No more nexus in a state? Stop collecting on all channels• (After you’ve cancelled your sales tax permit)

• Use TaxJar’s “Transactions” tab or “Expected Sales Tax Due” report to double check

TAXJAR TRANSACTIONS TAB

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EXPECTED SALES TAX DUE

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EXPECTED SALES TAX DUE

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STEP 7: AUTOMATE SALES TAX

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SAVING SELLERS HOURS ON SALES TAX

Connect your eCommerce provider

See your sales tax collected by state

View where you might have nexus

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View sales tax collected by jurisdiction

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Are you collecting the right amount?

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AutoFile: Let TaxJar file your return

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More than 7,000 happy customers!

Helpful resources

youtube.com/taxjarFor visual learners

salestaxcommunity.comTalk with 5,000 other store owners and tax pros!

blog.taxjar.comContent just for ecommerce & sales tax

TALK TO US!

855-800-6681

Have a lollipop!

WE LOVE QUESTIONS!

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