For sellers that reach a certain level of activity in the US or store goods there, you may have US Sales Tax returns to file. We can show you how to automate compliance for your ecommerce stores.
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If you store goods in the US, use Amazon FBA or hit certain activity levels per state, you are likely to have a 'Nexus' in a state and need to file returns there. Historically it has been expensive and time-consuming to handle US Sales Tax but things have fortunately come a long way, and we can get you set up and able to file your Sales Tax returns automatically and cost-effectively.
Sales Tax is no longer taxing...
“After a relatively straightforward onboarding and set-up process you will have a Sales Tax solution that is fully integrated with your ecommerce store, automatically prepares and files returns, with the option of automated payments as well.”
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We can quickly establish which States you have an obligation to file in and make sure you do this in time and avoid penalties.
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As part of the set up your ecommerce activity is integrated so that sales data is retrieved without you needing to do anything and State filings are prepared and submitted automatically.
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You have to option of setting up automated payments to each state via ACH (the US version of Direct Debits) or you can settle manually if you do not yet have a US bank account.
Sales Tax is the US equivalent of VAT. It is collected by states where you business has a 'sales tax nexus'. The rate can vary by product and state. Note, you are liable for the tax from the moment you have a nexus but are only permitted to collect sales tax once you have registered and have a permit.
You will have a sales tax nexus if you a physical presence in the a state, e.g. employees, property, or inventory. You can also have a nexus as a result of economic activity: the thresholds vary from $10,000 to $500,000 (most commonly $100,000) or more than 200 transactions in a year.
After a fairly quick set-up, the process is fully automated. Occasionally you will receive a notification which you may have to act on, typically in respect of changes in Sales Tax rules.
The price will vary based on your level of activity. As a guide: the software subscription with TaxJar starts at $300 monthly for 1,000 transactions a month, $700 for 10,000 transactions, $1,000 for 50,000 transactions.
TaxJar is the leading software solution used by US CPAs and ecommerce businesses to handle sales tax. We have selected them primarily based on the strength of our own clients testimonials, their public reviews and most importantly, the amount of time that it saves, at a cost-effective price.
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