Humans like simple things. And I think the owner’s favorite is simple. You like to check the projects in the list, or archive them in your project management application to make sure you have dealt with them and can continue to move forward.
I talked to many shopkeepers in the United States and noticed some common response to the not simple task of handling state sales tax.
Most people choose the \”hands -on\” method. It was very effective before the business began to grow. Then, the sales tax became a time -consuming nightmare, unable to fully integrate into the list of waiting items.
Others went all out to hire sales taxists to handle everything for them.
This is very expensive, and it is usually overkill. There is also a method of \”burying the head in the sand\” -ignoring it, hoping to disappear. This is just a bad idea.
My concept is,
By correcting education and sales tax automation, the owner can quickly reduce the burden on sales tax . You can start education by conducting annual tax inspections for yourself.
Let us start your annual tax inspection. But first of all, I will explain why all this looks so complicated.
Why the state sales tax looks so complicated
I understand why the sales tax does not seem to be overcome, and why there is \”buried the head in the sand \”Temptation. There are many factors in the state sales tax, including:
Governance at the first level of the state.
- The rules and regulations of 45 states (plus Washington Special Administrative Region) levied the sales tax are slightly different. Some are based on origin, some are based on destinations, and some require you to collect sales taxes for transportation. Some projects are taxable, some are not.
- Although most of the products you sell should be taxed, some states do not think that clothing should be taxable. OthersPeople may charge lower sales taxes on groceries. Taxation varies from channel.
- Multi -channel sellers may find that sales tax is a nightmare. If you use Woocommerce, it is easy to use correct plug -in to charge the sales tax . However, if you also use other CMS or offline sales, you may encounter difficult problems, such as only one unified sales tax rate in a state (which does not work for you). The deadline is different.
- As your business grows, you may be linked to the sales tax in more states, and you need to collect and submit sales tax. But unlike the federal income tax, you do not need to consider a single sales tax to the date . Some states hope to receive your letter every year, some states want to receive it once a quarter, and some states want to receive your letter every month. This may depend on how much you sell in that state, or just their hearts. The rates are different.
- Some states have a single unified sales tax rate. Sadly, those easy -going states are a minority. In most cases, the tax you need to levy varies from cities.
Therefore, how can we handle the sales tax when all these complexity is not good for us?
The answer is fast compliance check.
Do not panic: Quick compliance inspection Let your new year start.
Perform sales tax inspections through 5 steps Your business is growing and changing. You want to ensure your sales tax Life has changed appropriately.
This is five steps for your inspection.
1. Carefully check your sales tax relationship As your business grows, you can easily establish contact in other states without being aware.
The following is some e -commerce activities that may cause you to create contact in a new state : Open a new physical location or store goods in the warehouse
Hire employee, contractor or sales personnel (actual work in another state)
- ]
- ] Use a third -party related company to send sales to your store
Establish a direct sales relationship with a third party
Selling products at another state at the handicraft exhibition or trade exhibition
Are these activities sound familiar? You may have created a relationship. You can Check the standards of each state creation relationship here.
2. Check out your necessary business tax permit
] If you just realize that you may be related to NSW, please Register your sales tax permit in the state .
On the other hand, sometimes your business becomes less complicated. Maybe your remote employee leaves the company, or you decide to stop selling at large craft exhibitions outside the three states. Contact the tax authorities in your state to cancel any sales tax permit you no longer need .
One thing to remember: Some states have \” follow -up relationship . This only means that after the event where you set up a connection in the state, they may think that you have a few months (or even longer). Before submitting the last declaration form, please have no follow -up relationship with your state nucleus to ensure that you have no follow -up relationship.
3. View or change your application frequency
Many states, especially the states in the southeast, will be after your registered sales tax permit Submit applications every month in the first year. After that, considerHow much sales tax you pay monthly, they may change you to quarterly or annual declaration frequency. Please check all the communication of your state tax authority to determine whether your application frequency has been changed.
When it comes When you ask you to want it, you will change your application frequency
. Arizona is a typical example. They usually let you submit the frequency on a monthly, but If you ask well, they will change you to quarterly or annual frequency. A small telephone or email can save you a lot of work, so Please immediately contact the tax authority of your state .
If you want to change the frequency of declaration, please call your state’s tax authority.
State and local sales tax rates may change at any time, which means that you also need to update the tax rate of the store.
Interest rates are most likely to change in July, October, and the beginning of the year. You can enter your postal tax rate carefully by entering your postal code by entering Taxjar’s sales tax calculator . If you use Taxjar’s WoOOCOMMERCE sales tax plug -in,
We will automatically update your rate for you every month
, so you don’t have to worry about this.
5. Make sure you collect on all channels
] If you find that you are related to a new state with the sales tax, please make sure you start the sales tax from the state through all channels . One of the biggest mistakes we see in Taxjar is to forget to levy sales tax on one channel.
On the contrary, if you no longer have a sales tax relationship in the state, please make sure you stop Through all all through all all through all through all through all all through all through all through all through all through all. Channels charge fees from buyers in the state.
That’s it!
Give yourself a lollipop because you have passed the sales tax inspection. Why the sales tax compliance is so important
The compliance is very important. There are many good reasons. On the one hand, You want to avoid sales tax audits and fines and fines that follow .
If a state finds that you are connected but not collected, they may create a troublesome world. The issue of sales tax syndication may also bring criminal issues. Each state believes that it is illegal to levy sales tax without a sales tax permit.
Finally, if you have considered selling your business It is worth compliance with the sales tax
.
Sales taxation rules are one of the things that buyers have to check thoroughly before signing on the virtual line.
If you arrears sales tax, you may be forced to pay for your own pocket … otherwise the sales may fail.
It will help you keep on track and get rid of trouble.
Do you have a check for yourself once a month, your body will be very good.
Start a new year through fast inspection I understand -the sales tax is complicated. From experienced shop owners to new sellers, everyone needs to help solve this problem. If you need us, we will serve you at any time -please leave us a message.
We hope that this sales tax inspection will make you prepare for bigger and better things in the new year.
If you have other questions, please check the sales tax of the owner of this online store or start a dialogue in the comments.
