E-commerce merchants are already accustomed to dealing with taxes in states where we don’t actually have a presence. (Thanks, economic nexus.) But in some cases, those taxes aren’t sales taxes. Take the Texas Franchise Tax for example. Under Texas law, entities either...
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How to Collect Sales Tax Via Shopify and Other Online Carts
Recently we wrote about how easy online shopping cart onboarding can lead to sales tax disaster. Long story short, online shopping carts are very good at onboarding new e-commerce sellers. But there is sometimes a disconnect between setting up sales tax collection on...
Should you charge sales tax on digital goods?
Georgia’s governor recently signed a new sales tax law making digital goods such as e-books, movies, video games and digitally downloaded photographs taxable. The law went into effect on January 1, 2024 and is just one more in a long line of US states deciding how...
What “Marketplace Facilitator Laws” mean for Sales Tax
Good news for e-commerce retailers! As of January 1, 2023, every US state with a sales tax now also has marketplace facilitator laws. Why is a law good news? This means that now major online marketplaces like Amazon, Walmart, eBay, and Etsy are required to collect and...
Should you charge sales tax on your SaaS product?
The digital economy evolves quickly. Sometimes, it can be a challenge for government entities and taxing authorities to keep up, leading to incomplete or confusing guidance on tax regulations and compliance. This is the challenge currently facing “software as a...
Sales Tax Alert: When Easy Onboarding Leads to Sales Tax Disaster
As a business owner, it can sometimes feel like we’re just expected to know things by osmosis. But there’s no magic handbook to tell you that you have to obtain a county business license or how your income tax works now that you’re incorporated. One place e-commerce...
Back to School Sales Tax Holidays 2023
Is your state having a back to school sales tax holiday in 2023? Find your state on the list below. Updated Sep 2023 to include Virginia's late-breaking 2023 holiday. Dealing with a sales tax holiday. Find out more about how to handle sales tax holidays as an...
Sales Tax Holidays, Explained
From time to time, certain states will declare a “sales tax holiday” or “tax free weekend” on certain items. The most famous sales tax holidays take place in the fall and are collectively known as “Back to School Sales Tax Holidays.” But some states declare sales tax...
Important Updates to Colorado “Retail Delivery Fee”
On July 1, 2022, Colorado enacted a new “retail delivery fee” (RDF). This $0.27 fee (which will update to $0.28 on July 1, 2023) applies to all orders containing at least one taxable item shipping to customers by motor vehicle in Colorado. Technically the RDF is a...
Resale Certificates, Explained
As an e-commerce retailer, sooner or later you will encounter a resale certificate. Most of the time you’ll be providing your resale certificate to your vendor in order to buy items to resell. But you’ll also sometimes find yourself on the other end of that...