Between taxable and non-taxable products, shipping taxability, and "destination-based" sales tax rates, automating sales tax collection may seem daunting. Here's a free webinar with Mark Faggiano, Founder and CEO of TaxJar, a Magento Premier Technology Partner. Mark explains why it's so tricky to collect the correct amount of sales tax from customers and what you can do about it. Learn how TaxJar SmartCalcs provides free, accurate and no-hassle sales tax collection for Magento merchants, and how to get started in just a few minutes.

1. © 2016 Magento, Inc.! Page | 1!
Magento Webinar Series!
Premier Spotlight!

2. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 2!
5 STEPS TO SALES TAX AUTOMATION
with MARK FAGGIANO CEOOF

3. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 3!
With!
MARK FAGGIANO!
!
Founder and CEO – TaxJar!
@taxjarmark!

4. © 2016 Magento, Inc.! Page | 4!
Magento Premier Technology Partners!
Premier Partner! Technology! Total Customers!
Braintree & Express Checkout! 184,000,000+
!
Email Automation Platform! 7,500+!
Automated Sales Tax & Free Tax Calcs! 5,000+!
Natural Language Site Search! 300+!
Software Analytics! 250,000+
!
Content Delivery Network!
Platforms & sites such as GitHub, New Relic,!
Twitter, Vimeo, etc.!
Shipping Platform for Commerce! 55,000+!

5. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 5!
AGENDA!
• The 5 steps to sales tax compliance!
• Why charging the right amount of sales tax is so complicated!
• The anatomy of a sales tax rate!
• Magento sales tax collection the easy (and free) way...!
• Q&A!

6. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 6!
5 STEPS TO SALES TAX COMPLIANCE!
1. Know When you Have Nexus!
2. Register for a Sales Tax Permit!
3. Collect Sales Tax!
4. Report how Much You Collected!
5. File Your Return!

7.
IS WHAT YOU’RE SELLING TAXABLE?

14.
WHERE DO YOU HAVE NEXUS?

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NEXUS IS WHEN & WHY YOU CARE!
A presence / connection in a state that’s
significant enough for you to be required to
comply with sales tax law

23.
GET A SALES TAX LICENSE

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SALES TAX LICENSES (PERMITS)!
• Can’t legally collect sales tax without one!
!
• Need one for each state!
!
• Most states are free!

25.
THE ART OF COLLECTING

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GOLDEN RULE OF TAX COLLECTION!
Collect sales tax when the item sold is
shipped to a state where you have nexus

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MULTI-CHANNEL NEXUS!
• Nexus for one channel means nexus for!
your entire business!
• Collect on all your channels for all of your nexus states!

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WHAT’S THE CORRECT RATE?!
• Buyer’s state determines tax rate (sourcing)!
!
• Tax rate usually = sum of applicable rates!
• State!
• Local!
• Other (i.e., education, transportation)!

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What sales tax rate do you collect?!

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ORIGIN VS. DESTINATION SOURCING!
• Origin-based state!
• Tax rate = seller’s location!
• One rate for entire state!
!
• Destination-based state!
• Tax rate = where item is shipped!
• Variable rate!

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Some Products are Taxed Differently!
CLOTHING! FOOD & GROCERIES! TEXTBOOKS!
PRESCRIPTIONS! MAGAZINES! DIGITAL PRODUCTS!

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CLOTHING TAXABILITY IN NY!
Sales Tax on a $109 pair of jeans!
Jurisdiction! Tax Rate!
New York! No tax!!
Putnam County! 4%!
Metro Commuter Transit
District Tax!
0.0375%!
Total! 4.0375%!

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Handling Sales Tax in Magento!

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TAXJAR’S SMARTCALCS FOR MAGENTO!
Install our extension & get FREE, accurate calculations!
!
ü Origin vs. Destination & sourcing rules!
ü Local rate !
ü Shipping taxability !
ü Product taxability!
ü Updated rates be free?!

40. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 40!
HOW CAN TAXJAR DO THIS FOR FREE?!
“TaxJar has saved us
dozens of hours a
month.” !
!
- Jeff McRitchie,
MyBinding.com !

41.
FILE SALES TAX RETURNS

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FILING RETURNS!
• Filing deadlines usually tied to sales volume!
• Annual, semi-annual, quarterly, monthly!
• Deadlines typically last 2 weeks of the month!

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FILING IN MOST STATES SUCKS!
• Enter your sales & taxes collected !
for each jurisdiction!
!
• Gets worse if you’re multi-channel!

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46. FREE eBook !
Salestax101.com!

47. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 47!
HELPFUL RESOURCES!
• youtube.com/taxjar!
• For visual learners!
!
• salestaxcommunity.com!
• Talk with 5,000 other store owners and tax pros!!
!
blog.taxjar.com!
• Content just for ecommerce & sales tax!

48. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 48!
Q & A!