Blog Posts

What is Sales Tax Automation?

What is Sales Tax Automation?

April 5, 2016
If you’ve worked in e-commerce for long, you may have come across the term sales tax automation. It sounds fancy and complicated, but it’s really just the idea of taking your sales tax collection, remittance, and filing procedures, and making it all happen automatically. Exactly what is this sales tax process? 1. Determine the Sales Tax Rate The first thing that needs to happen, while a customer is checking out on your website, is determining what tax rate should apply to each item being purchased. At first glance this may sound simple. But if you operate in multiple states, or… Read More
Sales Tax, Restocking Fees and Refunds

Sales Tax, Restocking Fees and Refunds

August 28, 2015
Sales and use tax is complicated enough. Ecommerce shops have to determine whether they have a nexus in all the states they ship to, keep track of sales tax holidays for those states and figure out the complexities of a state’s sales tax exemption rules. However, what happens to the sales tax when a customer returns an item, especially if the vendor charges restocking fees? Accounting for restocking fees is an important aspect of any retail business. Here is a look at what retailers need to keep in mind when these actions take place. According to Sales Tax Support, sales… Read More
What You Need to Know about Sales Tax and Drop Shipping

What You Need to Know about Sales Tax and Drop Shipping

May 22, 2015
Drop shipping is a great way for e-commerce businesses that have limited or untested inventory to expand their customer offerings. By retailing products that are carried and housed by a third party distributor, such as a manufacturer, wholesaler, or fulfillment house, retailers can use drop shipping as away to grow their customer base, bring in more income and test out new inventory. However, drop shipping can have an adverse affect on sales and use taxes and thus, negatively impact the return on investment. How Drop Shipping Complicates Sales and Use Tax Because a third party is now involved, sales and… Read More