AccurateTax.com https://www.accuratetax.com Take the Guesswork out of Sales Tax Tue, 12 Mar 2019 14:00:28 -0400 en-US hourly 1 https://wordpress.org/?v=5.0.3 https://www.accuratetax.com/wp-content/uploads/2017/01/cropped-favicon_large-144x144.png AccurateTax.com https://www.accuratetax.com 32 32 Virginia Senate Passes Bill Implementing Remote Sales Tax https://www.accuratetax.com/blog/virginia-senate-passes-bill-implementing-remote-sales-tax/ Tue, 12 Mar 2019 14:00:28 +0000 https://www.accuratetax.com/?p=5481 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

The post Virginia Senate Passes Bill Implementing Remote Sales Tax appeared first on AccurateTax.com.

]]>
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 understand the implications of these laws and the different ways they are being implemented around the country, new ones are going into effect regularly.

The Shift Caused by Wayfair

Since June 2018, dozens of states have implemented, started enforcing, or began discussion of remote sales tax laws. Once the US Supreme Court released their decision in the Wayfair case, the flood gates opened, and a seismic shift occurred in how states collect sales tax from remote sellers, primarily online.

Before the Wayfair decision, there were already dozens of these laws in place or actively being considered in state legislatures around the country. The Supreme Court case was in direct response to a law in South Dakota that retailers were fighting against. Other states, however, like Virginia, had been waiting for a moment such as this when there would be able to pass such a law.

What Virginia’s New Law Will Include

While the Wayfair decision opened the gates for these laws to go into effect, it was not completely open ended. Language in the decision indicated that such laws needed to provide safe harbor for small sellers to avoid excessive burden on companies with limited resources. Other states have also taken it upon themselves to keep reporting and compliance in general as simple as possible and to not be overly aggressive in the enforcement of the new requirements (though some face struggles with this).

Virginia’s own law is aimed to be small-business friendly as well, with the following provisions to ease companies into the new requirements:

  • Only remote sellers with more than $100,000 in annual sales or 200 or more transactions in Virginia each year will be subject to collecting and remitting sales tax.
  • Enforcement of the law will be delayed until July 1, 2019 to give companies time to acquire the necessary sales tax registration and start collecting.
  • Several lines are included in the bill to provide the Virginia Tax Commissioner with guidance on streamlining implementation. These include ample notice of rate changes, a system to provide software providers with the information needed to support small businesses, and that only one return per month at the most be required.

In addition to these requirements, Virginia’s new law will include a marketplace facilitator requirement. This will require any marketplace facilitator that has at least $100,000 in sales or 200 or more transactions in Virginia to collect and remit sales tax on behalf of the sellers who use their platform. Similar laws have been implemented in several states already to further remove the burden of collecting sales tax in multiple states from small and medium sized businesses.

The Next Steps in Virginia

While ample guidance is provided in the law on how it should be implemented, who will be subject to the requirements, and when reporting should be conducted, some other components remain up in the air. The enforcement of the law at the state level, as well as who will be eligible for waivers and how those waivers will be obtained still need to be worked out.

The new bill is expected to be signed by Governor Northam soon, and will go into effect at the start of July later this year.

The post Virginia Senate Passes Bill Implementing Remote Sales Tax appeared first on AccurateTax.com.

]]>
How to Register for a Sales Tax Permit in Every State https://www.accuratetax.com/blog/how-to-register-for-a-sales-tax-permit-in-every-state/ Tue, 05 Mar 2019 14:51:03 +0000 https://www.accuratetax.com/?p=5477 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 In most states, you will... Read More

The post How to Register for a Sales Tax Permit in Every State appeared first on AccurateTax.com.

]]>
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

In most states, you will follow very similar steps to register for a sales tax permit. You’ll need your Employee Identification Number (EIN) from the IRS, as well as your primary place of business, business type, and other relevant business information.

From there, you will need to find the applicable web applications or forms for each state in which you do business that collects sales tax on out-of-state sellers. This does not yet apply to all states, so be sure to research thoroughly (and read our post here to see an updated list of current nexus laws) for where you need to follow these steps.

To help with the process, we’ve outlined below each of the 46 states and districts that collect sales tax, along with their Department of Revenue website and the relevant forms and links you’ll need to register. If you’re unsure which states require you to register, read more about the current requirements here, or contact us to discuss your options.

StateDoR WebsiteFormsCostOut-of-State Required?
AlabamaMy Alabama TaxesCOM:101$0Yes
ArizonaAZ TaxesJT-1$12 (additional per city)
ArkansasArkansas Taxpayer Access PointAR-1R$50
CaliforniaTax and Fee AdministrationOnline$0
ColoradoMyBizColoradoCR-0100$4-$16 ($50 deposit)
ConnecticutDepartment of Revenue ServicesREG-1$100Yes
FloridaDepartment of RevenueDR-1$5
GeorgiaGeorgia Tax CenterOnline$0Yes
HawaiiHawaii Tax OnlineBB-1$20Yes
IdahoIdaho Business RegistrationIBR-1$0
IllinoisMyTax IllinoisREG-1$0Yes
IndianaInBizOnline$25Yes
IowaDepartment of RevenueTax Permit Registration$0Yes
KansasDepartment of RevenueCR-16$0
KentuckyKentucky One Stop Business Portal10A100$0
LouisianaGeauxBizOnline$0
MaineMaine Revenue ServicesOnline$0Yes
MarylandInteractive Web ServicesCRA$0
MassachusettsMassTaxConnectOnline Only$0Yes
MichiganMichigan.gov518$0
MinnesotaDepartment of RevenueABR$0Yes
MississippiDepartment of RevenueOnline$0Yes
MissouriMyTax Missouri2643ABond Required
NebraskaNebraska One-Stop Business20$0
NevadaNevadaTaxNevada Business Registration$15
New JerseyDivision of RevenueNJ-REG$0
New MexicoTaxpayer Access PointACD-31015$0
New YorkDepartment of Taxation and FinanceDTF-17$0
North CarolinaDepartment of RevenueNC-BR$0
North DakotaTaxpayer Access PointApplication for Sales and Use Permit$0Yes
OhioOhio Business GatewaySTA (in-state), UT-1000 (out-of-state)$25 in state (free out-of-state)Yes
OklahomaOklahoma Tax CommissionOnline$20 + $10 per locationYes
PennsylvaniaDepartment of RevenuePA-100$0Pending
Rhode IslandDivision of TaxationBAR$10Yes
South CarolinaMyDORWAYSCDOR-111$50
South DakotaDepartment of RevenueOnline$0Yes
TennesseeDepartment of RevenueOnline$0Yes (pending litigation)
TexasTexas ComptrollerAP-201$0
UtahUtah.govTC-69$0
VermontSecretary of State Online ServicesBR-400$0Yes
VirginiaVirginia Tax Online Services for BusinessesR-1$0Yes (pending litigation)
WashingtonDepartment of RevenueBusiness License Application$0Yes
Washington DCOffice of Tax and RevenueFR-500$0
West VirginiaOne Stop Business PortalWV/BUS-APP$30
WisconsinDepartment of RevenueBTR-101$20
WyomingDepartment of RevenueSales and Use Tax License Application$60Yes

The post How to Register for a Sales Tax Permit in Every State appeared first on AccurateTax.com.

]]>
Important Sales Tax Dates for March 2019 https://www.accuratetax.com/blog/important-sales-tax-dates-for-march-2019/ Fri, 01 Mar 2019 16:24:29 +0000 https://www.accuratetax.com/?p=5474 sales tax due dates march 2019

Spring is almost upon us. We’ve all settled into the new year and hopefully are no longer writing “2018” on our checks. But the month of March is a busy one for sales taxes. A number of states expect yearly returns to be filed this month, plus New York’s quarterly due date. And as usual, all the lucky monthly filers get to do their paperwork too. Here’s a handy list for all of your due dates on a state-by-state basis for the month of March, 2019. Alabama Monthly Taxes Due 3/20 Arizona Monthly Taxes Due 3/20 Arkansas Monthly Taxes Due... Read More

The post Important Sales Tax Dates for March 2019 appeared first on AccurateTax.com.

]]>
sales tax due dates march 2019

Spring is almost upon us. We’ve all settled into the new year and hopefully are no longer writing “2018” on our checks. But the month of March is a busy one for sales taxes. A number of states expect yearly returns to be filed this month, plus New York’s quarterly due date. And as usual, all the lucky monthly filers get to do their paperwork too. Here’s a handy list for all of your due dates on a state-by-state basis for the month of March, 2019.

Alabama
Alabama
Monthly Taxes Due 3/20
Arizona
Arizona
Monthly Taxes Due 3/20
Arkansas
Arkansas
Monthly Taxes Due 3/20
California
California
Monthly Taxes Due 4/1 *
Colorado
Colorado
Monthly Taxes Due 3/20
Connecticut
Connecticut
Monthly Taxes Due 4/1 *
District of Columbia
District of Columbia
Monthly Taxes Due 3/20
Florida
Florida
Monthly Taxes Due 3/1 (Late after 3/20)
Georgia
Georgia
Monthly Taxes Due 3/20
Hawaii
Hawaii
Monthly Taxes Due 3/20
Idaho
Idaho
Monthly Taxes Due 3/20
Illinois
Illinois
Monthly Taxes Due 3/20
Indiana
Indiana
Monthly Taxes Due 3/20 if amount owed is over $1000
4/1 * if amount owed is $1000 or less
Iowa
Iowa
Monthly Taxes Due 3/20
Semi-Monthly Taxes Due 3/11 *
3/25
Kansas
Kansas
Monthly Taxes Due 3/25
Kentucky
Kentucky
Monthly Taxes Due 3/20
Louisiana
Louisiana
Monthly Taxes Due 3/20
Maine
Maine
Monthly Taxes Due 3/15
Maryland
Maryland
Monthly Taxes Due 3/20
Massachusetts
Massachusetts
Monthly Taxes Due 3/20
Michigan
Michigan
Monthly Taxes Due 3/20
Minnesota
Minnesota
Monthly Taxes Due 3/20
Mississippi
Mississippi
Monthly Taxes Due 3/20
Missouri
Missouri
Monthly Taxes Due 3/20
Quarter-Monthly Taxes Due 3/4 * (for last quarter-month of February), 3/11 *, 3/18, 3/25
Nebraska
Nebraska
Monthly Taxes Due 3/20
Nevada
Nevada
Monthly Taxes Due 4/1 *
New Jersey
New Jersey
Monthly Taxes Due 3/20
New Mexico
New Mexico
Monthly Taxes Due 3/25
New York
New York
Yearly Taxes Due 3/20
Quarterly Taxes Due 3/20
Monthly Taxes Due 3/20
North Carolina
North Carolina
Monthly Taxes Due 3/20
North Dakota
North Dakota
Monthly Taxes Due 4/1 *
Ohio
Ohio
Monthly Taxes Due 3/25 *
Oklahoma
Oklahoma
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
Pennsylvania
Pennsylvania
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
Rhode Island
Rhode Island
Monthly Taxes Due 3/20
South Carolina
South Carolina
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
South Dakota
South Dakota
Monthly Taxes Due 3/20
Tennessee
Tennessee
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
Texas
Texas
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
Utah
Utah
Monthly Taxes Due 4/1 *
Vermont
Vermont
Monthly Taxes Due 3/25
Virginia
Virginia
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
Washington
Washington
Monthly Taxes Due 3/25
West Virginia
West Virginia
Yearly Taxes Due 3/20
Monthly Taxes Due 3/20
Wisconsin
Wisconsin
Monthly Taxes Due 4/1 *
Wyoming
Wyoming
Monthly Taxes Due 4/1 *

The post Important Sales Tax Dates for March 2019 appeared first on AccurateTax.com.

]]>
4 Things to Know Before Setting up an Amazon Seller Account https://www.accuratetax.com/blog/4-things-to-know-before-setting-up-an-amazon-seller-account/ Fri, 22 Feb 2019 17:00:55 +0000 https://www.accuratetax.com/?p=5468 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. 1. Should You Become an Amazon Merchant? The first question isn’t even about how to sell on Amazon,... Read More

The post 4 Things to Know Before Setting up an Amazon Seller Account appeared first on AccurateTax.com.

]]>
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.

1. Should You Become an Amazon Merchant?

The first question isn’t even about how to sell on Amazon, but whether you should at all. While Amazon’s marketplace is immense and incredibly active, there are certain types of sellers that perform better on the site than others, and certain situations that may make it less beneficial to open your account.

So, who does best?

Those people who can sell items Amazon doesn’t carry on their own. This can fall into one of three categories:

  1. Unique Items – If you manufacture goods that aren’t in larger distribution channels (or craft homemade items from your home), Amazon offers an opportunity to leverage a massive platform and push your products out to the masses.
  2. Niche Items – Are the items you sell extremely hard to find otherwise or only desirable among a small userbase? Amazon is less likely to carry these items, so you can capture the market for them if there is limited competition.
  3. Used or Refurbed Items – If you sell used items, refurbished goods or other non-new items, there is a huge opportunity for you in a lot of categories on Amazon.

Amazon shouldn’t be your only outlet, either. People will do their research and look up your company name, especially for used items. Have a brand that has been established and can be evaluated before someone makes a buying decision.

2. Fulfillment by Amazon

Another area that Amazon is able to outperform its competitors in recruiting third party vendors is their Fulfillment by Amazon (FBA) program. Merchants can send goods to Amazon fulfillment centers to be stocked, so that when a user buys them, it can be shipped out through the Prime program. Users can get goods faster, leveraging Amazon’s logistics infrastructure, and you can focus on what you do best and not worry about shipping and handling.

FBA is a major benefit for the right vendors but has several requirements you should read up on before you start the process of signing up.

3. Shipping Requirements

If you opt not to become an FBA seller, or if you cannot for some other reason, there will be some restrictions for first time users. You won’t be allowed to offer two-day shipping until your account has established a strong history of good user reviews and reliable shipping windows.

At the same time, it’s incredibly important to ensure all of your product details are accurate, including the shipping materials you will use for the items. Amazon’s shipping calculations are automated based on size and location, so inaccuracies here can lead to lost revenue.

4. Sales Tax Collection

In the early days of Amazon as a third-party marketplace, sales tax collection wasn’t a major concern. These days, it is something almost all vendors need to be aware of and prepared for.

Since the June 2018 Supreme Court decision in South Dakota v. Wayfair, Inc, an increasing number of states have implemented affiliate nexus laws that require all sellers to collect sales tax on their sales, regardless of vendor location. Amazon was already working with many states that had laws before the ruling to do so and was collecting sales tax in all states where fulfillment centers were located (establishing physical nexus).

In some ways, this simplifies things somewhat as the infrastructure is already there. However, because of the implementation of marketplace facilitator laws that require Amazon to collect sales tax on the behalf of many of their third-party vendors, it’s important for you to know which states require collection and which don’t, and which states will require registration for sales tax collection.

Even if you only sell goods on Amazon, there is a good chance these new laws will affect you, so do your research before you start your account.

Leveraging Amazon’s Platform to Grow Your eCommerce Business

There are few tools as powerful and with as great a reach as Amazon.com. If you own an eCommerce site or are launching a new company that sells unique, DIY, or specialty goods, becoming an Amazon marketplace seller is a prime way to grow your reach overnight and start growing your business. Just make sure you are fully aware of what this will require, what costs may be associated, and what your reporting and collection requirements will entail.

The post 4 Things to Know Before Setting up an Amazon Seller Account appeared first on AccurateTax.com.

]]>
Massachussetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit https://www.accuratetax.com/blog/massachussettss-attempt-to-retroactively-collect-sales-tax-results-in-lawsuit/ Tue, 19 Feb 2019 16:00:10 +0000 https://www.accuratetax.com/?p=5463 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

The post Massachussetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit appeared first on AccurateTax.com.

]]>
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 Supreme Court decisions like Quill that stated physical nexus was required. But Massachusetts has taken the additional step of telling retailers that sales tax should have been collected and must be remitted retroactively for the months between October 2017 and June 2018.

Retailers Fight Massachusetts on Retroactive Collection

Because of the state’s decision, six retailers have filed a lawsuit claiming they shouldn’t have to pay the sales tax they would have collected in those eight months, because it was still unconstitutional to require them to do so before the Supreme Court’s ruling. Specifically, they cite language in the Wayfair ruling that appears to argue against retroactive collection of sales taxes.

These six companies alone would owe the state nearly $3 million in back sales taxes in that eight-month period, so are concerned that they, along with many other retailers who did not join the suit, would be required to pay taxes they may not have collected.

The Goal of the Lawsuit

The primary goal of the lawsuit by Newegg, Blue Nile, Silver Star Brands, Sweetwater Sound, US Auto Parts Network, and Balsam Brands is to eliminate whatever sales tax obligation the State claims they hold going back to October 2017.

Filed in December, the lawsuit seeks to show that Massachusetts is saddling retailers with an undue burden that they could not have prepared for when they thought the law was illegal. This is not the first time that Massachusetts has faced legal action over this law. Crutchfield – an audio system retailer out of Virginia, similarly argued that the law was too much of a burden.

The argument in the current suit is that the action puts out of state companies at a disadvantage because they did not collect taxes during that eight-month period, in effect discriminating against interstate sellers, which would violate the Commerce Clause. They also argue that Massachusetts is violating the Internet Tax Freedom Act – a law passed in 1998 that says online businesses cannot be taxed differently from offline businesses. The DOR regulations passed by Massachusetts do not apply to print catalogs or other out of state sellers who don’t operate online.

Because of these issues, the plaintiffs are asking for the entire regulation to be blocked.

The Continued Impact of Wayfair Fallout

While only one state of many with similar laws, these situations have ripple effects for companies throughout the United States, due to the very nature of interstate commerce. As new economic nexus laws are implemented and states work to determine how to enforce existing regulations, these issues will continue to develop. For retailers, it represents a time of uncertainty and upheaval, meaning it’s more important than ever to be organized, prepared, and well versed in the laws both nationally and in each state in which they operate.

The post Massachussetts’s Attempt to Retroactively Collect Sales Tax Results in Lawsuit appeared first on AccurateTax.com.

]]>
How to Avoid Sales Tax Overpayments https://www.accuratetax.com/blog/how-to-avoid-sales-tax-overpayments/ Mon, 04 Feb 2019 14:59:57 +0000 https://www.accuratetax.com/?p=5457 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

The post How to Avoid Sales Tax Overpayments appeared first on AccurateTax.com.

]]>
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 sales tax. There’s a recurring risk that they overpay. To help, here are some best practice tips to keep yourself in compliance without overpaying.

Understanding Relevant Sales Tax Exemptions

Sales tax exemptions follow similar patterns across different states but do vary in significant ways. For this reason, it’s important to have a process in place for understanding and evaluating exemptions at a high level.

Companies should understand what these exemptions entail, provide the proper exemption certificates to suppliers, and always maintain clear records in case of an audit in the future. The risk for these audits will only increase as more of these laws go into place and states get serious about reclaiming the tax base, they feel they’ve lost to online commerce.

Reviewing Your Current Processes for Collecting Sales and Use Tax

To avoid the temptation to "just charge tax" for something rather than worry about whether it is exempt or in a state that requires collection, the following steps should be considered:

  • Evaluating Nexus – Where do you currently sell products and through which channels? Prepare a detailed list of where you are required to collect sales tax and through which online sites (as some may do it on your behalf through marketplace facilitator laws).
  • Filing Requirements – Within those states and municipalities where you do have to collect sales tax, what are the specific filing requirements. Every state is different in this regard, with different thresholds determining annual, quarterly, or monthly filing deadlines.
  • Registration Processes – At the same time, there will be different requirements for how and when you register to collect sales tax. In some cases, even if you don’t collect sales tax but someone does on your behalf (e.g. Amazon or eBay), you may be required to acquire and maintain a current sales tax certificate and may even need to file a zero return each year.
  • Exemptions – If you have exemptions, you should have issues certificates from all states in which they are needed on file and ready to provide to the appropriate suppliers for specific transactions.

In addition to the above related to how you interact with state revenue agencies, your internal processes should match up. That means a detailed audit of your invoice processes and accounts payable systems to ensure they can properly integrate with and support your new sales tax obligations. Software can be a beneficial resource for this, as can a third-party audit to ensure compliance with all relevant regulations.

Working with Experts to Support Your Efforts

Even if you are confident in your company’s accounting capabilities and have good legal counsel on your side, it’s recommended that you consider a third party to help ensure compliance and better prepare for and hopefully avoid future audits related to Wayfair.

The goal is to ensure you are on-time and accurate with all sales tax reporting and your internal records and invoices, but also that you operate as efficiently and profitably as possible. More states will implement laws in the coming months and new efforts to consolidate and work together to improve these processes will be introduced, both at the state level and federally. Your best option to stay ahead of these changes is to spend time reviewing and updating your systems regularly, with the right software and professional support at your side.

The post How to Avoid Sales Tax Overpayments appeared first on AccurateTax.com.

]]>
Important Sales Tax Dates for February 2019 https://www.accuratetax.com/blog/important-sales-tax-dates-february-2019/ Fri, 25 Jan 2019 14:19:59 +0000 https://www.accuratetax.com/?p=5451 February 2019 Important Sales Tax Dates

We’re all settled into a routine and have stopped writing 2018 on our checks, right? That’s great, but make sure you keep up with your other routines, too…such as filing your sales tax returns! Here’s a helpful list of due dates, broken down by state. Anywhere you see a *, that means the normal date falls on a weekend, so your return is due the next business day. Alabama Monthly Taxes Due 2/20 Arizona Monthly Taxes Due 2/20 Arkansas Monthly Taxes Due 2/20 California Monthly Taxes Due 2/28 Colorado Monthly Taxes Due 2/20 Connecticut Monthly Taxes Due 2/28 District of... Read More

The post Important Sales Tax Dates for February 2019 appeared first on AccurateTax.com.

]]>
February 2019 Important Sales Tax Dates

We’re all settled into a routine and have stopped writing 2018 on our checks, right? That’s great, but make sure you keep up with your other routines, too…such as filing your sales tax returns! Here’s a helpful list of due dates, broken down by state. Anywhere you see a *, that means the normal date falls on a weekend, so your return is due the next business day.

Alabama
Alabama
Monthly Taxes Due 2/20
Arizona
Arizona
Monthly Taxes Due 2/20
Arkansas
Arkansas
Monthly Taxes Due 2/20
California
California
Monthly Taxes Due 2/28
Colorado
Colorado
Monthly Taxes Due 2/20
Connecticut
Connecticut
Monthly Taxes Due 2/28
District of Columbia
District of Columbia
Monthly Taxes Due 2/20
Florida
Florida
Monthly Taxes Due 2/1 (Late after 2/20)
Georgia
Georgia
Monthly Taxes Due 2/20
Hawaii
Hawaii
Monthly Taxes Due 2/20
Idaho
Idaho
Monthly Taxes Due 2/20
Illinois
Illinois
Monthly Taxes Due 2/20
Indiana
Indiana
Monthly Taxes Due 2/20 if amount owed is over $1000
2/28 if amount owed is $1000 or less
Iowa
Iowa
Monthly Taxes Due 2/20
Semi-Monthly Taxes Due 2/11 *
2/25
Kansas
Kansas
Monthly Taxes Due 2/25
Kentucky
Kentucky
Monthly Taxes Due 2/20
Louisiana
Louisiana
Monthly Taxes Due 2/20
Maine
Maine
Monthly Taxes Due 2/15
Maryland
Maryland
Monthly Taxes Due 2/20
Massachusetts
Massachusetts
Monthly Taxes Due 2/20
Michigan
Michigan
Monthly Taxes Due 2/20
Minnesota
Minnesota
Yearly Taxes Due 2/5
Monthly Taxes Due 2/20
Mississippi
Mississippi
Monthly Taxes Due 2/20
Missouri
Missouri
Monthly Taxes Due 2/20
Quarter-Monthly Taxes Due 2/4* (for last quarter-month of January), 2/11*, 2/18, 2/25
Nebraska
Nebraska
Monthly Taxes Due 2/20
Nevada
Nevada
Monthly Taxes Due 2/28
New Jersey
New Jersey
Monthly Taxes Due 2/20
New Mexico
New Mexico
Monthly Taxes Due 2/25
New York
New York
Monthly Taxes Due 2/20
North Carolina
North Carolina
Monthly Taxes Due 2/20
North Dakota
North Dakota
Monthly Taxes Due 2/28
Ohio
Ohio
Monthly Taxes Due 2/25*
Oklahoma
Oklahoma
Yearly Taxes Due 2/20
Monthly Taxes Due 2/20
Pennsylvania
Pennsylvania
Monthly Taxes Due 2/20
Rhode Island
Rhode Island
Monthly Taxes Due 2/20
South Carolina
South Carolina
Monthly Taxes Due 2/20
South Dakota
South Dakota
Monthly Taxes Due 2/20
Tennessee
Tennessee
Monthly Taxes Due 2/20
Texas
Texas
Monthly Taxes Due 2/20
Utah
Utah
Monthly Taxes Due 2/28
Vermont
Vermont
Monthly Taxes Due 2/25*
Virginia
Virginia
Monthly Taxes Due 2/20
Washington
Washington
Monthly Taxes Due 2/25
West Virginia
West Virginia
Monthly Taxes Due 2/20
Wisconsin
Wisconsin
Monthly Taxes Due 2/28
Wyoming
Wyoming
Monthly Taxes Due 2/28

The post Important Sales Tax Dates for February 2019 appeared first on AccurateTax.com.

]]>
How Marketplace Facilitator Laws Impact Online Sellers https://www.accuratetax.com/blog/marketplace-facilitator-laws-impact-online-sellers/ Thu, 24 Jan 2019 13:38:02 +0000 https://www.accuratetax.com/?p=5445 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

The post How Marketplace Facilitator Laws Impact Online Sellers appeared first on AccurateTax.com.

]]>
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 expected to collect and remit sales tax. Let’s take a closer look at what these laws do and how they might impact retailers.

What Are Marketplace Facilitator Laws?

A marketplace facilitator is a company that operates a marketplace on a platform much larger than third party vendors would be able to build on their own. Those third-party sellers are then able to sell goods and services through that platform, reaching a much larger audience than they otherwise could. Amazon is the world’s largest marketplace facilitator, home to hundreds of thousands of third-party vendors who use Amazon’s technology to list products, collect payments, and in certain cases, ship products from Amazon’s fulfillment centers.

Marketplace facilitator laws have been implemented in several states, including Connecticut, Minnesota, Oklahoma, Washington, Pennsylvania, Iowa, and Alabama. These laws require that the marketplace facilitator take over the role of collecting and remitting sales tax on behalf of these third-party vendors. For the states, the law is a way to streamline and simplify the process of collecting sales tax. Instead of processing returns from tens of thousands of sellers from around the country, they interact with only a handful of these larger facilitators (who facilitate a minimum of $250,000 in retail sales per year). It’s a lot easier to deal with a multi-million-dollar Amazon sales tax return than 15,000 small returns from vendors scattered across the country.

How Marketplace Facilitator Laws Impact Retailers

On their face, these laws seem like a good thing for retailers. Now on the hook for collecting sales tax in more than 30 states, it’s becoming increasingly complex to manage these processes.

These new laws offer significant benefits to states that worry about compliance with all of these complicated laws. It basically ensures compliance throughout the state and increases the overall tax revenue collected. For retailers, while collecting that sales tax may not be required in these states, there are still responsibilities. It’s generally agreed upon that these vendors should maintain their sales tax permits in each state, and in most cases are required to file a zero return if they only sell in that state through the marketplace facilitator. If they do physical business or have their own online store in that state, they will still need to file for those other sales.

In terms of which types of sales this impacts, for most states, these laws have just recently gone into effect or will be going into effect in 2019 and largely affect those who sell on Amazon and eBay – the largest marketplace facilitators in the US and the only two that consistently breach the thresholds set by these states. Other marketplaces covered by the laws in some states (but not all with marketplace facilitator laws), include Etsy and Walmart.

Each of these states has its own reporting requirements for the third-party seller, so it’s important to research their laws and understand when and at what thresholds you need to acquire a permit and file sales tax returns in those states, even if you sell exclusively through these marketplaces.

The Current and Future Impact of Marketplace Facilitator Laws

While there are currently only a handful of states with marketplace facilitator laws, it is expected that more will follow as the benefits of simplifying the tax collection process and vastly improving upon compliance rates are seen in other states, especially those that are passing their own affiliate nexus laws.

Whether you sell into one of these states or not, be aware of the impact that your operations on any third-party marketplace might have on your sales tax collection processes. Laws are changing quickly, and requirements are rarely consistent across state lines. As state governments acclimate to the new law of the land, it’s important to be vigilant and ready for whatever changes might come.

The post How Marketplace Facilitator Laws Impact Online Sellers appeared first on AccurateTax.com.

]]>
Congressional Bills Resulting from the Wayfair Decision on Sales Tax https://www.accuratetax.com/blog/congressional-bills-resulting-from-the-wayfair-decision-on-sales-tax/ Tue, 15 Jan 2019 14:50:21 +0000 https://www.accuratetax.com/?p=5433 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

The post Congressional Bills Resulting from the Wayfair Decision on Sales Tax appeared first on AccurateTax.com.

]]>
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 tax legislation that would allow them to collect on remote sales. In response, several new bills were introduced in the United States Senate and House of Representatives to address how and when these taxes could be collected. While none of these bills has passed, they are worth reviewing for indications of what legislation might be considered by the new congress seated this month.

Online Sales Simplicity and Small Business Relief Act of 2018 (SB3275)

An updated version of House Resolution 6824, the Senate’s bill was introduced toward the end of 2018 by the four senators from New Hampshire and Oregon – both Nomad States. The bill would put in place a temporary moratorium on taxation of remote sales for the duration of 2019, preventing any retroactive collection on sales less than $10 million until a new law can be presented and passed by Congress to address interstate nexus thresholds.

The goal of the bill is to give time to businesses that need to adapt to the now wide-open opportunity for the nation’s small businesses, and especially Nomad states that have no sales tax infrastructure to adapt to the new standards.

Protecting Small Business from Burdensome Compliance Cost Act (H.R. 6724)

Originally introduced on September 6, 2018 by Rep. Bob Gibbs (R-OH) and later reintroduced as H.R. 6824 (which was the basis for SB 3275) at the end of the month, this bill offers many similar protections for small businesses that the senate bill does.

It would seek to provide time and a higher $10 million threshold for sales tax collection that would allow congress to evaluate an interstate compact for collecting sales tax. Because remote nexus laws have thresholds ranging from $10,000 to $250,000, different rates and different processes for collecting and filing, the bill’s sponsors see the implementation for small businesses as being particularly burdensome.

No Retroactive Online Taxation Act of 2018 (H.R. 7184)

Subsequent to H.R. 6724 was H.R. 7184, the No Retroactive Taxation Act of 2018. Introduced by Rep. James Sensenbrenner (R-WI), who also introduced the revised H.R. 6824, the bill would ban states from imposing sales tax collection duty on remote sellers for any sales that occurred before the Supreme Court’s decision was issued on June 21, 2018. This would include anyone who, under the old physical nexus rules, did not have physical presence in a state and therefore wasn’t legally required to collect sales tax before the ruling.

What Happens Next

The goal of these bills is threefold. To start, they seek to delay the impact of the new laws being passed by states around the country so that small business can better prepare for them. Second, they seek to make it easier for out of state vendors to remit sales tax, not requiring them to work with dozens of different revenue departments around the country. Finally, they seek to make it clear what is taxable and what the thresholds of taxation are for out of state vendors.

There are a lot of concerns in the small business community about the way remote seller tax laws currently work, if only because states are so vastly different from one another and have such diverse regulations. For small businesses with limited staff that still meet the minimum requirements for collection, it’s an extra burden that many are worried could impact those businesses.

Nonetheless, none of these bills were passed before the end of the 115 Congress, meaning it will be up to a bipartisan coalition in both the House and Senate to bring them back up and pass them in time to have an impact as new laws go into effect around the country in 2019.

The post Congressional Bills Resulting from the Wayfair Decision on Sales Tax appeared first on AccurateTax.com.

]]>
Common Sales Tax Exemptions and When They Apply https://www.accuratetax.com/blog/common-sales-tax-exemptions/ Wed, 02 Jan 2019 15:00:17 +0000 https://www.accuratetax.com/?p=5425 common sales tax exemptions

Sales tax has always been a complicated web of regulations and laws for retailers to untangle. For eCommerce companies in particular, it was difficult to know when and how to collect sales tax based on where they had physical nexus. Now, with the recent Wayfair decision from the US Supreme Court, there are more questions than ever as an increasing number of states pass economic nexus laws requiring sales tax collection from all vendors who do business there. If you do enough business across state lines online – either in dollar amount (typically $100,000 or more) or transactions (200 or... Read More

The post Common Sales Tax Exemptions and When They Apply appeared first on AccurateTax.com.

]]>
common sales tax exemptions

Sales tax has always been a complicated web of regulations and laws for retailers to untangle. For eCommerce companies in particular, it was difficult to know when and how to collect sales tax based on where they had physical nexus. Now, with the recent Wayfair decision from the US Supreme Court, there are more questions than ever as an increasing number of states pass economic nexus laws requiring sales tax collection from all vendors who do business there.

If you do enough business across state lines online – either in dollar amount (typically $100,000 or more) or transactions (200 or more) – this applies to you and will likely be a major factor in how you choose software and structure your transaction processing in the years ahead. On top of that, there are many common sales tax exemptions, and they vary across state lines. To help start understanding what you should look at more carefully and when it might be an issue, here is a list of the most common sales tax exemptions in the United States and what they typically entail.

Types of Goods

The first type of sales tax exemption relates to the type of goods being purchased. Several states have sales tax exemptions on a range of different types of goods. The most common goods that enjoy exemptions include:

  • Food – While processed food and some types of beverages and sweets are often not exempt, many others are in certain states. Groceries and perishable goods may not be taxed at all.
  • Digital Goods – Most digital goods were exempt until recently when states started to tax them in certain situations. It is important to check the rules of each state if you sell digital goods as it is likely you will sell into each of them.
  • Real Property – Physical property and real estate of certain types is often subject to different taxes and therefore does not require sales tax collection.
  • Clothing – Certain states and municipalities will exempt some types of clothing. There are also several sales tax holidays each year for back to school shopping that exempt clothing and shoes up to a certain amount.

Service Offerings

By default, most services are exempt from sales tax in most states. There are exceptions to this rule, however, for specific types of services that certain states have decided to tax. Some examples of services that are taxed include:

  • Services to Property – Repairs and improvements to your vehicle, your home, or to appliances and other personal property in your home may be subject to sales tax rates depending on the nature of the service.
  • Business Services – Some business services are subject to sales tax in certain states as well, including telephone call answering services, credit reporting, extermination, and more.
  • Personal Care Services – Personal care services include tanning salons and massages (not covered by professional licensing), animal boarding and grooming, salons and spas, and other personal grooming services are taxed in an increasing number of states.

This is the area in which there is likely to be most divergence on a state by state basis, so be sure to research carefully which states tax services you offer, and which do not.

Use of Goods

How the goods are used may also result in an exemption from sales tax collection. This can happen in one of a couple of ways:

  • Resale – If a good is being purchased for resale, such as the case with a drop shipper, that resale purchase may be exempt from sales tax, as the tax will be charged in the transaction to the end consumer. In this case, however, exemptions can become complicated across state lines and may require documentation.
  • Manufacturing – materials purchased for incorporation into an end product may also be exempt from sales tax collection. Such is often the case for manufacturers purchasing raw materials. Additional machinery and equipment may also be exempt in some states for manufacturers. This also often requires paperwork to document the exemptions for the suppliers.

Buyer of Goods

For the most part, if the buyer of the goods in question is the Federal Government, sales tax may not apply. Additionally, some state and local governments offer the same exemptions for local government purchases. Nonprofits, religious organizations, charities, and other tax-exempt groups with proper documentation are also often not subject to sales tax collection.

Knowing When and How to Collect Sales Tax in a Post-Wayfair World

Because of the impact of Wayfair on online sellers, it is increasingly important to fully understand when an exemption may apply, how it must be documented, and in which states it is in effect. Doing this manually, on top of tracking all of the different tax rates for both state and local municipalities where your goods may be purchased can be incredibly challenging, so it is important to have the right systems and professional support in place to help and avoid future issues that might impact your business.

The post Common Sales Tax Exemptions and When They Apply appeared first on AccurateTax.com.

]]>