Navigating the labyrinth of ecommerce sales tax can be a challenge for small businesses. To ensure that your venture remains competitive, it’s essential to stay up-to-date on all regulations related to online sales.
If you’re not aware of the laws surrounding ecommerce sales tax, then you could be susceptible to penalties and fines – potentially crippling your business’ financial prospects!
Do not assume that customers will pay sales tax on your products – it’s a good idea to notify them about this beforehand. You can take advantage of an app like Shipwire, which automatically sends out pre-notified notifications to customers and remits taxes upon their delivery.
Failing to provide proper notice to customers that they are obligated to pay sales tax may result in penalties. If you fail to charge tax in your ecommerce store, you are liable for remitting payments to the appropriate authorities – regardless of whether or conversely they were sent notification!
1. Outsource sales tax calculations and filing to a third-party provider
If you’ve amassed a substantial client base, it may be prudent to invest in an ecommerce sales tax program that automates your end-of-quarter calculations for you.
These tools enable businesses to easily account for their state and local taxes in the course of their operations without the necessity of second-guessing – thus saving precious time!
2. Educate your staff on changes in sales tax laws
Despite the transparency offered by ecommerce sites such as Amazon, this does not mean that customers are aware of what constitutes a taxable sale. This can lead to confusion when it comes time for invoices and payments – especially if your staff don’t possess adequate knowledge on how these laws should be understood.
To combat any potential problems with sales tax regulations – even those concerning out-of-state businesses – simply observe what is happening in your state or locality and act accordingly.
If you’re uncertain about how to interpret the latest sales tax rules, request an expert’s assistance. Alternatively, you could seek guidance from us – we’ll happily provide assistance in understanding these laws if needed!
If you’re ready to take your ecommerce sales tax strategy up a notch, consider employing an ecommerce tax accountant. Our team can provide guidance and assistance with the complex process of collecting taxes from online sales. Contact us today for more information!
