Join Clayton Goodhue Senior Manager at Avalara and Mark Kapczynski, Chief Marketing Officer as they discuss changes and implications that tax and recent rulings have on small eCommerce sellers.
Join Clayton Goodhue Senior Manager at Avalara and Mark Kapczynski, Chief Marketing Officer as they discuss changes and implications that tax and recent rulings have on small eCommerce sellers.
Watch the full video below!
Key Takeaways
1. Tax compliance is not optional
Sales taxes are a large part of a state’s revenues. Billions in sales tax revenues from eCommerce have gone uncollected and states are starting to implement new laws and initiatives to begin collecting.
2. Business must collect sales tax according to nexus
Nexus is the connect that establishes a business obligation to collect and remit tax. Some nexus-creating activities include:
- affiliate relationships
- trade show attendance
- commissions to resellers
- investors/board meetings
- marketing and web advertising
- drop shipments
- multistate locations
3. How Avalara manages sales tax process
Step 1: Know where your business must collect and remit sales tax
Step 2: Register to collect and remit sales tax
Step 3: Calculate the correct sales tax amount
Step 4: Track and manage exempt sales
Step 5: Remit sales to the tax authority
