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

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

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


JOE IS USING FBA

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


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


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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34Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

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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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Jennifer Dunn

This image is going to be tough to see but I'll try my best

Lizzy Greenburg

is this better now?

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

Mark Faggiano

looks like screen is falling off slide

Mark Faggiano

maybe it's bc of the bottom. need to remove the footer

View where you might have nexus

Mark Faggiano

same thought as previous slide

Mark Faggiano

(and all subsequent slides with screens)

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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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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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give your business a 2017 sales tax checkup

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