Sales Tax System

01/31/2023

This is important for Amazon sellers who have been selling on FBA before 2019.

The California appeals court sided with the CDTFA on an important case against sellers and sides with Amazon for past sales tax compliance.

https://www.salestaxinstitute.com/resources/ca-appeals-court-sides-with-cdtfa-and-amazon-in-sales-tax-issue

The California Court of Appeal, Second Appellate District released a decision on January 9,2023, confirming the CDTFA had the legal discretion to hold third party sellers responsible for the sales tax due on sales made through Amazon.

01/23/2023

Why use our Sales Tax System for your sales tax registrations?

Experience: Our team has filed thousands of sales tax registrations since 2015 and stays up-to-date on all state changes, updates, and issues to save you time and money. All registrations are completed in-house.

Register in multiple states with one application: Save time by filling out one simple master application to get registered in every state, instead of a separate application for each state.

Complete registration process: Our team will review your application for accuracy, get you registered with the state, and follow up to obtain your license. All applications will be processed within 3-5 business days.

Tax account completed: All state tax accounts will be completed, including any necessary PIN, code, or permit numbers from the state. You'll be ready to file your sales tax returns with one of our software partners or e-commerce accountants.

Professional support: Our team will be in constant contact with you throughout the process to make collecting and remitting sales tax as seamless as possible. All our tickets are tracked and responded to by our team through Zendesk.

Best overall value: Our fees are half that of our competitors, yet we offer a fully comprehensive service. We also have specific pricing for those without an SSN or ITIN and are partnered with all the major providers for sales tax return service, so we can help point you in the right direction after completing your registrations.

Go to the link below to learn more about our services and fees to register for sales tax. We are here to help you every step of the way!

https://www.salestaxsystem.com/sales-tax-permit-registrations/

12/16/2022

[Time is Now] Sales Tax Registrations -1st Quarter of 2023.

Did you or your client's business cross more economic nexus thresholds in 2022 and now need to register in January?

Beat the Rush and Start that Process Now with our Comprehensive Sales Tax Registration Service at $125 per state + State Fees.

Our team will set up your tax accounts quickly so you can avoid unnecessary sales tax filing costs, simplifying the transition to filing sales tax returns.

We work with all the software and SALT firms as partners to help you file your sales tax returns and manage that part for you.

Separate fees. State fees are separate, and if the responsible party does not have an SSN, we charge a $10 separate fee to mail the applications if required by that state.

Let us help you with information overload and take over this manual, labor-intensive process from you.

Learn more at this link and get started: https://www.salestaxsystem.com/sales-tax-permit-registrations/

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10/25/2022

There is a new NAICS update for 2022.

This is important for your sales tax registrations for each state.

The 2017 NAICS industry for online retail sales (i.e., e-commerce) was 454110, Electronic Shopping and Mail-Order Houses. For the 2022 NAICS (current version), revisions were made to address economic changes.

Major changes were made in the Retail Trade sector (44-45), with the elimination of the store/nonstore distinction, resulting in significant restructuring of the sector. 2017 NAICS industries for electronic shopping and mail-order houses, formerly classified in Subsector 454, Nonstore Retailers, were reclassified, resulting in the elimination of this subsector.

Electronic shopping and mail-order houses were distributed throughout the new Retail Trade structure, similarly to retail stores.
To determine the correct NAICS code for your business, you may use a code that describes your kind of business under the Retail Trade sector (44-45)

https://www.census.gov/naics/?58967?yearbck=2022

08/26/2022

This is NOT good news for Amazon FBA sellers who also sell on Shopify regarding sales tax compliance.

Do you have stock in Kentucky and also sell on Shopify or your own website?

When do you need to register for sales tax?

Here is what the Kentucky Department of Revenue says:

Once the out-of-state retailer begins making direct sales or sales through a nonmarketplace website, then the retailer must register based on physical nexus
The presence of a warehouse located in Kentucky does establish physical nexus for an out-of-state retailer. This is true whether the retailer maintains, occupies, or uses the warehouse directly or indirectly

If the out-of-state retailer makes all sales to Kentucky customers through a marketplace provider, then the marketplace provider is required to collect the Kentucky sales tax on behalf of the individual retailer
Once the out-of-state retailer begins making direct sales or sales through a nonmarketplace website, then the retailer must register based on physical nexus.

See our map below of the economic nexus thresholds which are separate from the physical nexus caused by FBA stock.

Do you need help with your sales tax registrations?

Go to this link to learn more: https://www.salestaxsystem.com/sales-tax-permit-registrations/

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07/20/2022

Amazon FBA Creates Nexus for Your Shopify Sales.

Did you know that selling on Amazon FBA can create physical nexus in up to 31 states?

You might think that is true, but Amazon now collects and remits all my sales tax in those states except Missouri. That is true.

Here is the key point...

If you also sell on your own website or through a Shopify store, because you already have physical nexus in up to 31 states, any sales in those states through your website or Shopify store are subject to sales tax even if you did not cross the economic thresholds yet in those states.

When determining if your past sales tax is material to you or not, you may owe a lot more in past sales tax than you thought, especially if you were only looking when you crossed the economic nexus thresholds in each state.

The one problem when searching for when you first had FBA stock in a state through your Amazon sales is that you can only track your inventory 18 months back. You may have had physical nexus before that date.

We already created an internal discussion with Amazon's tax team on the 18-month inventory issue in early 2021, but they were not willing to make a change.

In other words, if you started selling on Shopify in 2019 and now go to pull your inventory reports on Amazon, it will only go back to about January of 2021.

It is possible if you were selling on Amazon in 2019 and before, you likely had physical nexus before January of 2021.

Remember, collecting sales tax from customers in a state is illegal without first being registered. This costly mistake made by Shopify sellers should be fixed ASAP.

Do you need support registering for sales tax and creating tax accounts in the states where you have nexus? See our complete sales tax registration services, pricing, and FAQs at https://www.salestaxsystem.com/sales-tax-permit-registrations/.

Questions?

Schedule a free evaluation call with our team at https://calendly.com/scott_letourneau/sales_tax_free_eval or us directly at 702-851-7550.

06/24/2022

[Live Webinar- June 30th] Shopify Sales Tax Compliance Requirements

Sales tax compliance impacts everything from your profits to your ability to sell or buy a company and avoid being stuck with successor liability.

Even with Shopify's Sales Tax Dashboard providing you with alerts, it does not give you the full story and can mislead your compliance requirements.

Date and Time: Thursday, June 30th, 1 pm PST/3 pm EST

What I will Teach You:

· Are Your Products and Services Taxable (the impact on your compliance costs)

· Shopify Tax Settings (mistakes to avoid)

· Shopify Sales Tax Liability Dashboard (what your dashboard is NOT telling you)

· Economic Nexus Thresholds Challenges (what you need to know to minimize compliance costs)

· When to Register for Sales Tax (timing is everything)

· How to Register for Sales Tax (tips for both U.S. and Non-U.S. residents)

· LIVE Q & A on your most important questions

SPECIAL BONUS: Special Video Interview with S.A.L.T. (sales and local tax) Firm: What is Your Pain Tolerance for Sales Tax Audits? You will receive this brand-new video after your registration.

Go to this link to register now: https://launchwithconfidence.lpages.co/shopify-sales-tax-webinar/

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Shopify Sales Tax Compliance Requirements Don’t Pay Sales Tax Out of Your Own Pocket!

06/06/2022

The Best Virtual Address Service for Sales Tax Registration.

Save time and money with your sales tax registrations. Avoid late filings with our virtual mail service. Many states mail PINs, codes, and permits.

https://www.salestaxsystem.com/virtual-address-scanning-forwarding-service/

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05/01/2022

Are you selling on your website or have a Shopify store? Did you cross the economic nexus thresholds and need support with your registrations? We can help.

We specialize in working with non-resident sellers without an SSN or ITIN, which requires more steps in the registration process and filing of sales tax returns.

What do others say about working with Sales Tax System with their sales tax registrations:

"My Company Rip Toned Fitness has been working with Scott and the Sales Tax System for 6-7 years now and couldn't be happier with their services and support.

They very generously offer free valuable information to anyone without any payment, but their paid information and services go to a much higher level. They are thorough, detailed, and accurate and make the information easy to understand and usable to any average business owner. They constantly research and update their information as things change in the marketplace.

Their customer support is always prompt, courteous, and thorough. They go above and beyond to ensure their customers are taken care of consistently.
Personally, and as a business, I highly recommend doing business with Scott and the Sales Tax system team."
- Mark Pasay

"You have helped me get the sales tax permit in 3 states to let me sell on Amazon USA. However, maybe I'll register for more states in the future. Not sure yet.
Thanks a lot to Jamie and Althea for making this happen. From Europe, U.S. tax systems are almost impossible to understand, not to mention the hassle of making these sales tax registrations on my own. It would be impossible.
So big up and big thanks!"
- David Feher

"The easy and streamlined step-by-step process is very helpful. Thank you for making this painless."
- Scott Johnson

"Sales Tax System has helped us save time registering for sales tax and has made the process efficient and simple."
- Dominik Reinmund

Learn more about our sales tax registrations services at this link: https://www.salestaxsystem.com/sales-tax-permit-registrations/

03/30/2022

Do you need help with sales tax registrations for your Shopify business? Did you cross any of the economic thresholds? Other factors and states have different methods as to when to determine if you crossed the thresholds. Check out those methods at our webpage, https://www.salestaxsystem.com/shopify-sales-tax/.

We are the best company for non-resident companies selling on Shopify and need support with U.S. registrations. We do not require a U.S. company, and our remitting partner can file your sales tax without a U.S. bank account for an ACH pull.

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Shopify sale tax responsibilities have changed since 2018. Check Shopify's dashboard first, but know it is likely not accurate. Learn more.

02/23/2022

Shopify's Sales Tax Liability Dashboard

Did you receive a notification from your dashboard that you may need to register because you crossed economic nexus thresholds?

Warning: Do NOT turn on the tax settings for any states where you have crossed the thresholds BEFORE registering with a sales tax permit. It is illegal to collect tax without a permit and could be considered tax fraud. At this point, you must get registered.

Shopify's Tax Liability Dashboard:

Shopify's tax liability dashboard will help you determine if you should register for sales tax.

How to Find Shopify's Liability Dashboard:

After signing in to your Shopify admin page, click on settings (on the bottom left) and click taxes. Next to the United States, click manage.

You should see a section at the top of the screen that says manage sales tax liability. To the right of that, click Show all liabilities.

Now you are on the sales tax liability dashboard and can click show details to see Shopify's calculation on how close you are to hitting the threshold.

Key Points about Shopify's Data

-If you sell on other marketplaces it does not count those sales towards your economic nexus thresholds. Some states count marketplace sales even if the marketplace collects and remits sales tax.

-Do you sell any products exempt from sales tax, such as supplements (in some states) or clothing? If so, they are not counted towards your economic thresholds.

- If you have a physical presence in a state with a warehouse that ships your products, that creates nexus even if you have not crossed economic thresholds yet.

Here is our updated options and pricing to get you registered: https://www.salestaxsystem.com/sales-tax-permit-registrations/

Our fees are $125 per state for our comprehensive service, including if you don't have an SSN. State fees may apply to some states.

If you don't have an SSN, in some states, if we have to mail your sales tax application, an additional $10 fee per state will apply.

After you fill out our sales tax application, we will let you know your state fees and mailing fees, and we will know which states you want us to get you registered.

Our sales tax permit registration process is the most complete in the industry. We work with many CPA firms and top sellers for compliance.

02/07/2022

Which State is Best to Protect Your Walmart Profits for Non-Residents?

Nevada vs. Wyoming a Comprehensive Overview

Many sellers looking to expand to Walmart or other marketplaces are looking to form a U.S. company, and when they do, many questions come up, and one of the important ones is which state is best.

The two most popular states are Nevada and Wyoming.

There are dozens, if not hundreds, of posts on this subject, but we took this important decision deeper than anyone else in terms of protection, taxes, privacy, and strategy.

Go to the link below to read our latest posts from our sister company, NCP (FYI, we can form entities in either state).

Is Wyoming Best:
https://www.nvinc.com/wyoming-llc/

Is Nevada Best:
https://www.nvinc.com/why-incorporate-in-nevada/

This is only the tip of the iceberg for a complete U.S. expansion.

Obtaining all necessary EIN and completing the SS4 correctly to ensure you fall into the IRS's correct tax return requirement.

With an IRS inquiry or audit, most get this step wrong and pay the price 18 months to three years later.

Schedule a call with our team to discuss your Walmart expansion steps, time frame, and costs involved.

https://calendly.com/scott_letourneau/business_free_eval

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