Is your New Year's Resolution for 2019 to start collecting and filing sales taxes? It can seem like an overwhelming and confusing task to take on yourself. We have been doing this for the last 25 years and have seen first hand just how complicated it has become. Now with the recent decision by the Supreme Court (Wayfair) it, it appears that many companies are deciding to just register and file. And it seems like they all want to make it effective January 1, 2019. In today’s podcast, you will learn what that would entail and how to get your business ready to start collecting and remitting sales tax. Listen in as Andy and Dan discuss the the 5 steps you need to take in order to make this happen by the first of the year and see the questions they answer.
Step #1: Start With Nexus And Taxability. Figure out where you have nexus first and consider if what you sell is even taxable.
- How do I determine my nexus footprint?
- Do I need to get registered everywhere?
- At what point can states force you to register?
- Can I register for sales tax myself?
- What can give me nexus?
- What if I have been doing business in a state for a long time without having a sales tax license?
- How do I know if my product is taxable?
- What should I do if I have a lot of sales tax exposure in a state?
Step #2: Evaluate Your Taxing System (POS, Website Shopping Cart, Amazon, Walmart, etc.)
- What do I do to make sure my shopping cart software is set up for sales tax?
- How to make sure my Amazon seller’s account is set up correctly for sales tax?
- Do I need to get some developers involved at this stage?
Step #3: Get Registered. States require you to register and/or obtain a license from them before you can collect tax on their behalf.
- Who can help me get registered for sales tax?
- Can I really register my company for sales tax on my own?
- Where is a good resource for doing the registrations myself? TaxJar has a great blog post with links to every state here.
- Are the states the same when it come to registering for sales tax?
Step #4: Turn On The Tax. You need to go into your settings in all of your sales channels and turn on the tax collection function to automatically start assessing tax on your sales invoices.
- How do I start collecting the sales tax?
- How do I avoid getting in trouble with sales tax in all the states?
- Can I start collecting the sales tax even if I haven’t gotten my sales tax registration yet?
Step #5: File the Returns. Once you've figured out where to collect the tax and you've collected the money, then the time will come when you actually fill out the returns and remit the funds. It may be annually, quarterly, or monthly.
- How often do I need to file sales tax returns?
- Can I file my own sales tax returns?