Sales Tax Blog
Affiliate Programs and Sales Tax in 2019
For the better part of two decades, the Internet economy has relied heavily on affiliates and third-party publishers to amplify the messaging and reach of online retailers. Whether it’s blogs and newsletters pointing back to Amazon through its Associates program or rebate software driving traffic to relevant goods on niche eCommerce sites, affiliate marketing has long offered an opportunity for companies to pay for high-quality, targeted traffic from relevant sources. One of the biggest challenges of these programs, however, was the constantly shifting laws around sales tax liability at the state level. Some programs were only offered in states with… Read More
4 Things to Consider Before Bringing in Outside Capital
When we tally the requirements for entrepreneurship, we love to talk about grit and passion and vision and work ethic. While all of these qualities do help, your business isn’t going to go anywhere without funding. If you’re looking to fund your small business (and bootstrapping isn’t cutting it for you), there are two main ways to raise outside capital: debt financing and equity investment. Business owners who aren’t ready to relinquish control turn to debt financing. Lenders don’t expect to have a say in your business; they just expect you to make your payments. Then, once you’ve repaid your… Read More
Virginia Senate Passes Bill Implementing Remote Sales Tax
The Virginia Senate recently passed Senate Bill 1083, a new law that would allow the state to start collecting sales tax from remote sellers out of state. Originally introduced to the Virginia Senate at the start of the 2019 legislative session, the bill has now passed and is expected to be signed by Governor Ralph Northam in the coming weeks. When signed, this bill will make Virginia the latest of more than 30 states to implement some form of remote sales tax on out of state sellers, something that was considered unconstitutional until very recently. While vendors work to fully… Read More
How to Register for a Sales Tax Permit in Every State
Whether yours is a new company just getting off the ground or an existing eCommerce company working to comply with new out-of-state sales tax laws around the country, you need to register for sales tax permits. Every state has different regulations and requirements, and five (Oregon, Montana, New Hampshire, Delaware, and Alaska) have no sales tax at all, so it can be overwhelming to get started. This guide is designed to help you gather the right information, find the applicable forms, and apply for a permit wherever needed. The Process to Register for a Permit GST registration was introduced in… Read More
4 Things to Know Before Setting up an Amazon Seller Account
Amazon is the world’s largest marketplace, offering third party sellers a chance to participate in more than $150 billion in annual sales. But unlike marketplaces of the past or more open-ended markets like eBay, Amazon has a number of rules and regulations you’ll need to follow before you are even approved as a seller on the site. To help you prepare for the process of starting your own Amazon Seller Account, we’ve outlined four things you need to know to get started. Article text continues below video version. This video is made using InVideo.io 1. Should You Become an Amazon… Read More
Massachussetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit
Since June 2018, there has been a surge of legislation and corresponding litigation around the implementation of new sales tax laws. While many states are implementing new laws that go into effect this year, others have had economic nexus laws in place since well before the Wayfair ruling. Massachusetts is one of those states, having passed a law in October 2017 that required out-of-state online retailers to collect sales tax. This alone isn’t out of the ordinary. More than a dozen states had similar laws on the books before Wayfair, and many online retailers opted not to comply, citing previous… Read More
How to Avoid Sales Tax Overpayments
Following the Supreme Court’s decision in the Wayfair case, online retailers were left wondering how exactly the next year would play out. How many more states would implement new Economic Nexus laws, and how would they go about collecting and remitting sales tax to those states to stay compliant? A big part of that is calculating and remitting the correct amount of sales tax for sales. With dozens of states now implementing these laws and different tax rates in each state (and many municipalities), it’s more difficult than ever for a small online retailer to keep track of and pay… Read More
How Marketplace Facilitator Laws Impact Online Sellers
In recent years, ecommerce and the sales tax implications of running such a business have become significantly more intricate and complex. Where once physical nexus laws and a limited number of outlets on which to sell goods made the process relatively simple, there are now dozens new regulations, laws and requirements, all of which vary by state and municipality. In addition to the recent spate of new affiliate nexus laws being implemented following the June 2018 Supreme Court Wayfair decision, marketplace facilitator laws are impacting how and when both large ecommerce sites with marketplaces and smaller, third party companies are… Read More
Congressional Bills Resulting from the Wayfair Decision on Sales Tax
Last year was a significant year for all businesses that sell across state lines online. The June 21, 2018 US Supreme Court decision in South Dakota v Wayfair struck down more than 25 years of precedent, allowing states to collect sales tax on remote sales without the need for physical nexus. The result was a wave of anxiety among small and medium sized businesses that were not yet equipped to collect and process these transactions for each individual state. Since the Supreme Court’s decision, more than a dozen additional states have passed or moved forward to enact previously passed sales… Read More- « Newer Posts
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