Contenu connexe Similaire à Sales Tax Bootcamp for Amazon FBA Sellers (20) Sales Tax Bootcamp for Amazon FBA Sellers1. with MARK FAGGIANO
CEO OF
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SALES TAX BOOT CAMP
FOR FBA SELLERS
Your Guide to Getting Sales Tax Compliant
2. GOALS
• Cover some tax basics
• Connect sales tax relates to Amazon
• Share next steps
• Resources for help in the future
• Questions!! (use the chat section to the left)
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3. QUICK INTRO:
• Passion: using tech to solve
problems for small business!
• Founded TaxJar in 2013
• Not a CPA or tax professional
• Talked to thousands of online
sellers, pros, auditors, states
• Here to help you make informed
decisions
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4. WHO I TALK WITH EVERY DAY
• People making a living online
• Multi-channel FBA sellers
• Want to be educated
• Trying to determine where they have nexus
• Sales tax is being collected in different accounts
• Filing returns is a frustrating, waste of time
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5. ”
“
“I want sales tax
to go away!”
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– Average TaxJar Customer
7. CHAOS PREVAILS
• No federal laws or governing body (yet)
• 45 states (and DC) = 46 sets of laws
• Nexus
• Taxability
• Rates
• Due dates
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9. WHAT’S TAXABLE?
• Tangible items are taxable
• Common exceptions are clothing and food
• Services are mostly not taxable
• Are the tides changing?
• Shipping, gift wrapping can be taxable
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16. PASS-THROUGH TAX
• Pay what you collect
• Never pay out of pocket!
• Sellers are ‘collection agents’
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17. Sales Tax Can Be Automated
Starting is the hardest part
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18. WHAT THE HECK IS NEXUS?
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19. NEXUS IS WHEN/WHY YOU CARE
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A presence / connection in a state that’s
significant enough for you to be required to
comply with their sales tax law
28. IT’S NOT OVER YET
• Fulfillment is a differentiator
• Amazon is investing in infrastructure
• Passage of federal & state legislation will accelerate
growth of fulfillment centers
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29. WHEN SHOULD I COLLECT
SALES TAX?
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30. GOLDEN RULE OF COLLECTION
Collect sales tax when the item sold is shipped
to a state where you have nexus
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31. MEET JOE SELLER
• Based in Akron, OH
• Only has nexus in OH
• Complying in 1 state
33. Collect sales tax
REMOTE SALE
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Waltham, MAAkron, OH
34. JOE’S BUSINESS IS GROWING!
• Using a 3rd party fulfillment service
• Inventory stored in NV
• Nexus in OH and NV
• Complying in both states
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37. JOE’S USING FBA
• AMZN storing his
inventory in 5 states
• Nexus in 6 states
• Complying in all 6
states
38. Collect sales tax
NEXUS SALE
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OH, NV, CA, AZ, PA, INOH, NV, CA, AZ, PA, IN
REMOTE SALE
39. Collect sales tax
REMOTE SALE
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ANY REMOTE STATEOH, NV, CA, AZ, PA, IN
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HOW MUCH SALES TAX
SHOULD I COLLECT?
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41. COLLECTION LOGIC: SOURCING
• State where item is shipped determines tax rate
• Tax rate usually = sum of applicable rates
• State
• Local
• Other (i.e., education, transportation)
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42. 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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45. Copyright © 2015 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2015 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc. 45
SELLING ON AMAZON
& SALES TAX
46. GOOD NEWS
• Focus on nexus. Amazon will collect sales tax for you!
• Tax Collection Service in Seller Central
• Product tax codes
• Local taxes
• Cost is 2.9% of tax collected
• If you collect $10 in sales tax, the fee will be $0.29
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47. BAD NEWS
• YOU have to enable collection in Seller Central
• Amazon will NOT tell sellers
• How to collect in FBA states (TaxJar will)
• Where to collect (TaxJar will)
• Easy to collect ‘wrong’
• Collecting only state tax in a destination-based state
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FILING RETURNS
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50. HOW OFTEN DO I FILE?
● Filing deadlines usually tied to sales volume
• The more you collect, the more often you pay
● Frequencies: annual, semi-annual, quarterly, monthly
● Deadlines typically fall on 15-30th of the month
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51. FILING TO THE STATES
• Combine and file a single return per state
• Not separate returns per channel
• File zero returns!
• When you’ve collected $0 in sales tax
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52. PAY ON TIME = $$
Some states have discounts
for on-time payment
• Generally between 1-2%
• It’s free money!
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53. PAY MORE IF YOU’RE LATE
All states have penalties for late payment
• Booo!
• Late payment charges
• Interest on what wasn’t paid
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54. FILING IN DESTINATION STATES
• Huge pain!
• States rely on you to divide up the money collected
• Calculate taxable sales & sales tax collected by jurisdiction
• Gets worse if you’re multi-channel
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57. HOW ARE YOU FEELING?
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59. WHAT DO I DO NOW?
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63. HOW DO I GET STARTED?
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64. STEP 1
• Comply in your home state
• Register for a sales tax license
• Enable sales tax collection
• Pay and file
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65. STEP 2
• Branch out to new states
• Voluntary Disclosure of you have a history
• TaxJar can help
• Collect on all channels for your nexus states
• Nexus on one channel means nexus for your entire
business
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67. WHO WILL KNOW?
• The decision to comply is up to you
• Risk tolerance is your guide
• States are getting more desperate
• eCommerce is growing
• Legislation is looming
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69. from calculations to reporting & filing
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REGISTRATIONS
& EDUCATION
SMARTCALCS REPORTING AUTOFILE
Painless sales tax compliance for online sellers,
70. Thousands of happy customers, including...
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75. HOW MUCH SALES TAX DID YOU COLLECT BY JURISDICTION?
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78. • 30-day free trial (no credit card required)
• Monthly or annual subscriptions
• Pricing based on transaction volume
• Starts at $19/month for 1k transactions
• $19.95 per AutoFile return
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Get Started…FOR FREE!