by Mark Faggiano
Mark Faggiano is the CEO of TaxJar, a service built to make sales tax compliance easier for multi-channel ecommerce sellers.
Here at TaxJar, we call January the “sales tax perfect storm” because almost without fail online sellers will have at least one tax return due.
Dealing with sales tax can be an administrative hassle, especially after coming off all of the excitement of Q4. But it doesn’t have to be. These tips will help you survive the January sales tax perfect storm for another year.
Check Your Due Dates
Sales tax is governed at the state level, and every state is a little different when it comes to sales tax due dates. Check your January 2016 sales tax due dates to make sure you file your sales tax return on time. Paying late can trigger a fine and interest, but filing early can earn you a sales tax discount in many states!
Report How Much Sales Tax You’ve Collected on ALL Platforms
Once you’ve determined when your sales tax return (or returns) is due, your next step is to determine how much sales tax you’ve actually collected. This can get tricky – especially if you sell on more than one channel. (Ex: You sell on FBA, eBay and have your own store through Shopify.)
The hard way to report all your sales tax collected is to pull a report from each of your channels and then try to combine them all into a spreadsheet. From there, in the vast majority of U.S. states, you have to figure out how much sales tax you collected from buyers in each city, county and special taxing district. This is a huge hassle, and why we created TaxJar. We’ll integrate with the platforms you sell on and break your report down just the way the states want to see it. A task that can take hours for multi-channel sellers now takes just a few minutes!
File Your Sales Tax Returns
Once you’ve double-checked your due date and reported how much sales tax you’ve collected, your next step is to file your sales tax return. You can find links for each state’s sales tax filing system here.
And that’s it – you’re done with sales tax for another January! If you have sales tax questions, check out TaxJar’s Sales Tax Guide for FBA Sellers or ask away in the Sales Tax for eCommerce Sellers Facebook Group.
TaxJar, a service built to make sales tax compliance simple for eCommerce sellers. Try a 30-day-free trial of TaxJar today and eliminate sales tax compliance headaches from your life!