As your business changes, you may find that you’re no longer doing business in a state. And that may make you consider closing out your sales tax accounts. This guide will walk you through why you might want to cancel your sales tax permit, and some of the reasons you...
Sales Tax
How to Handle a Sales Tax Filing Frequency Change
When you register for a sales tax permit, the state assigns your business a filing frequency. This frequency is generally monthly, quarterly, or annually, though some states have other frequencies, such as twice per year. Your assigned filing frequency generally...
What to do when you Receive a Sales Tax Notice from the State
Once you register for a permit, you may notice that your mailbox is suddenly stuffed full of sales tax notices from your state’s taxing authority. Usually called the “Department of Revenue,” but also going by other names, your state’s tax department will send you...
A Merchant’s Guide to Validating E-Commerce Sales Tax Software
If you are an e-commerce merchant collecting sales tax, it’s vital to make sure you’re collecting correctly in every step of the chain. Why? Sales Tax Software Errors Lead to Double Payment and More Last year we discovered that a handful of our clients had overpaid...
When to Charge Sales Tax on Online Classes
Online education was already popular in the early 2000s, but during the pandemic learning new things online really blew up. Maybe it was all the people who’d never had time to stop and smell the roses suddenly finding themselves homebound. People learned new skills,...
Sales Tax: Affiliate Nexus & Click-Through Nexus Explained
In the days before South Dakota v. Wayfair became the law of the land, states sought to make sure that any business who benefitted from doing business in their state also collected sales tax from buyers in that state. One way they did this was with “affiliate nexus”...
Sales Tax on Crowdfunding Campaigns, Explained
So you crowdfunded to make a new board game or short film or open up your new taco truck. Do you have to charge your crowdfunding backers sales tax? How does that work exactly? States are starting to solidify their guidance around crowdfunding and sales tax. Let’s...
Selling or Buying a Business? How to Handle Sales Tax During Due Diligence
When selling or purchasing a business, it is widely acknowledged that sales tax has become a critical due diligence checklist item over the last five (5) years especially with more and more scaling businesses being funded by venture capital / private equity investors....
US Sales Tax Guide for Non-US Based E-Commerce Retailers
When talking to non-US based sellers, we often hear, “My country has a tax treaty with the United States. We don’t have to worry about US tax.” This is true. For income tax. But sales tax is a whole other ball of wax. And international sellers are often caught...
When are the 2024 sales tax holidays?
States use sales tax holidays as a way to attract shoppers and stimulate the economy, as well as encourage consumer behaviors such as disaster preparedness or using energy efficient appliances. For e-commerce sellers, that means knowing about and understanding the...