How Much Do You Really Owe in Sales Tax?

Sales Tax can be confusing! There are many questions. Do I need to collect sales tax? What items do I need to collect sales tax on? Who do I need to collect sales tax from? What rate do I need to charge for sales tax? How often do I file and pay sales tax? How do I file sales tax?

SALES TAX CHECKLIST

• What states do you have physical nexus or economic nexus in?

• Do those states collect sales tax? Make sure you turn on collecting sales tax in your POS for those states.

• What items are taxable in each state (states have different requirements for what items you should collect tax on)?

• Do you have your products categorized correctly (some states only collect tax on accessories and not clothing)?

• Who are you selling to? Are they tax exempt? Do they have a resale certificate? Make sure to keep records of tax-exemption certificates and to mark those customers as tax-exempt in your POS.

• Is your store information correct in POS (updating addresses and adding store locations or popup locations) so that your POS will collect at the correct sales tax rate?

Answering the questions on this checklist will get you on the right track. But remember, the easiest solution is to outsource! We can help answer all of the questions above as well as take sales tax off your plate so you can focus on doing what you love (because we know it's not sales tax)! We can help to ensure you are collecting the correct amount, get registered in the correct states, and file and pay your sales tax on time. We can even get you a discount with some states for paying on time.