Presented by Susan Petracco of AccurateTax.com. These days, online sales tax, tax laws, and rules and rate changes are in the news almost constantly. With thousands of jurisdictions in the United States, different sourcing model and taxability rules for each state, and competing federal and state laws attempting to define what sales tax should be collected, the idea of sales tax can seem daunting to the large and small business owner alike. Ecommerce sellers should become familiar with what 'nexus' is as it pertains to sales tax, as well as applicability of nexus concepts and issues as they relate to sales and use tax. Come join us as Susan Petracco, an ecommerce and tax software developer, presents an exploratory review of the entire sales tax lifecycle and how your business can be prepared for whatever the future may hold.

2. A Few Definitions
• Sales Tax & Use Tax
• Nexus
• Sourcing Rules

3. Sales Tax – Sourcing Map

4. A Few Definitions
• Sales Tax & Use Tax
• Nexus
• Sourcing Rules
• Custom Tax Rules

5. Sales Tax – The Past

6. A Brief History of (Internet) Sales Tax
• 1992: Quill v. North Dakota
• Misconception that internet sales are really
tax free

8. A Brief History of (Internet) Sales Tax
• 1992: Quill v. North Dakota
• Misconception that internet sales are really
tax free…
• The perceived lack of online sales tax was a
driving force for e-commerce
• The cost of not requiring retailers to collect
online sales tax has made this an economic
issue for states

9. Sales Tax – The Present

10. Sales Tax – Today’s Landscape
• Thousands of taxing jurisdictions across the US
• Limited centralized processes for managing sales
tax
• Many states still have little capability to enforce
their own rules
• Audits are more about getting the big fish, but
smaller retailers are being looked at more
frequently now as well
• Compliance is a moving target

11. Questions You Need to Answer
• What do I sell?
• Where do I sell it from?
• How do I sell it?

12. Sales Tax Lifecycle
• Assessment of location
• Determination of products
• Calculation
• Collection
• Reporting
• Remittance
Sales Tax

13. How Hard is it to Calculate Sales Tax?
• In certain states and for some businesses, it’s
simple.
• Destination v. origin sourcing
• Nexus and collecting for multiple states
• Product tax classing
• Gotchas: Tax holidays, thresholds

14. As Your Tax Burden Grows…
• Signing up in multiple states
• Remitting across multiple systems
• Calculating the correct amount to remit –
sales, partial shipments, cancellations, returns
• Handling tax-exempt customers

15. Addressing My Store’s Needs
• Nexus Determination
• Assess your tax liability, review it as often as
changes occur
• Trust your CPA, but verify
• Find a software solution that supports YOUR
needs

16. • What is SSTP?
– Conforming states, non-conforming states, and associate
members
– Sourcing Rules, Taxability Matrix Charts,
Reporting/Remittance
What else is out there today?
Streamlined Sales Tax Project
• How does this affect me as a retailer?
– At this point it’s voluntary
– Volunteer versus non-volunteer sellers
– Free software
– Relief from Liability
• Streamlined doesn’t necessarily mean simple

17. SSTP by the Map

18. Should You Consider SSTP Now?
• What you commit to
• What you get in return
• Is it worth it now? Or in the future?

19. Sales Tax – The Future

20. Marketplace Fairness Act
• Marketplace Fairness Act (MFA): What is it?
• A history of past legislation
• Where the bill currently stands
• Small seller exemption

21. Marketplace Fairness Act
• What are the chances of this passing?
• If it passes?
– States joining SSTP vs. building their own solution
– Compliance dates (90-180 days)
– Solutions for Retailers
• DIY vs. Third-Party Provider
• Certified Service Providers

22. SSTP and MFA, Together
• SSTP is likely to become a bigger player
• SSTP already has a model in place
• Taxability Matrix Definition and Reporting Processes
• Boundary/Rate File management process
• Certification Process for States and Vendors
• Group of existing Certified Service Providers (CSPs)

23. Preparing for What Comes Next
• Seek advice from your CPA or tax consultant
sooner rather than later
• Stay informed about the status of Marketplace
Fairness
• Monitor state legislation, including those that
affect your nexus
• Small Seller Exception removes a great deal of
concern (if it stays)
• Determine options for calculating online sales tax
(both software and data)

24. Choosing a Sales Tax Solution
• Integrates with your shopping cart or provides
a programming interface (API)
• Fits your budget – monthly, setup fees, long-
term commitment
• Provides the tools you need: Calculation
reports, remittances, exemption certificate
management

25. Find this presentation online at:
http://www.slideshare.net/accuratetax/
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