Automated Sales Tax Compliance for Your eCommerce Site

Registration, tax return filing and support for your web sales across the United States.

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4 Steps to Make Your eCommerce Website Compliant for sales tax across the US

1. Understand How It Impacts Your Business

Registering for sales tax and charging your US customers tax will have a significant impact on your business. It is important to know your legal obligations and the commercial implications of tax compliance. The software can help automate the process, but there are various practical issues to understand:

  • What are my legal obligations and risks if I don’t get it right?
  • Could I structure my business more efficiently to minimise tax exposure?
  • How will charging sales tax impact my business commercially?
  • What if state tax offices ask questions or audit me?
  • What does it mean if I sell via other channels?
2. Register for a Sales Tax Permit

If customers in multiple US states buy from your eCommerce store, you might be legally obligated to get a sales tax permit in those states. You will need to understand your Nexus obligations to determine where you have to register for tax.

You then need to apply with the relevant state for a sales tax permit. Each state has their own registration process, but it will generally involve completing a detailed registration form and providing supporting documentation about your business, supply chain and products.

3. Set Up Sales Tax Collection On Your Shopping Cart & Start Collecting

Once registered for sales tax in a state, you must start charging sales tax on eligible sales made to that state. We simplify this process by helping you configure your store to ensure the relevant tax will be added to your sales at checkout.

4. Report and File Sales Taxes Collected

You will have to file a monthly or quarterly return to every state where you are registered, where you report all the sales you made to their state. The tax returns are filed electronically using the relevant state tax office’s filing portal – they must be submitted before the specific deadline, and you have to remit the tax you have collected.

The tax returns are very complicated because transactions must be reported at a jurisdictional level, and sometimes by product. You need to factor in discounts, refunds and ‘sales tax holidays‘ and ensure the exact amounts are reported in the correct boxes – or you risk severe penalties.

How Yonda Can Help Collect, File & Pay Sales Tax on your website

It’s hard enough to run a successful online business without having to worry about sales tax in 50 states. Yonda simplifies the Sales Tax process.

We can specifically help you with:

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Why It’s So Important to Register for Sales Tax

If merchants don’t register and remit their sales taxes, it could lead to legal and financial problems. 

States have the right to legally demand all historic taxes you should have paid to them, and they can add ruinous penalties on top of that. What are the chances of them catching you? Very high!

In addition to the financial penalties that can be payable, there are other ways non-compliance can impact your business negatively, including: 

Does This Apply to US Sellers Only?

No. While it is more likely a State will find and penalise a US business if they are not complying, the sales tax legislation applies to all merchants who sell into the United States. It doesn’t matter if you export your products from outside the USA or have a local fulfilment – if you sell to a State you need to consider your Nexus.

There Are 50 States to Consider for Your eCommerce website!

Sales tax in the USA is a consumption tax on the sale of goods. If you sell products to US states from your Shopify store, you might need to charge sales tax.

The tax is imposed at a state level, so there is no federal law which governs the tax for the USA as a whole. The first state to implement a sales tax was West Virginia in 1921 and since then, it has been adopted by 46 states (and is used in Washington DC).

Although the tax is charged by the state and local authorities, it is administered by the seller who is responsible for charging it. Shopify merchants must charge sales tax if they have ‘Nexus‘ in the state, which is the USA’s way of saying “a legal obligation to register and collect sales tax”.

Every state has different rules, so it is not so simple to know where you have to register.

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Our Clients

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Integrations:
Sector:
B2B, D2C
Tax Challenges:
Automated Tax Filing, Nexus Monitoring, Sales Tax Registration

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Integrations:
Sector:
B2B, D2C, Marketplace
Tax Challenges:
Automated Tax Filing, Nexus Monitoring, Sales Tax Registration

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Integrations:
Sector:
D2C
Tax Challenges:
Automated Tax Filing, Nexus Monitoring, Sales Tax Registration

Beautiful wedding and prom dresses, sold to every state in the USA.

Integrations:
Sector:
D2C
Tax Challenges:
Automated Tax Filing, Nexus Monitoring, Product Code Setup, Sales Tax Registration

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Integrations:
Sector:
D2C
Tax Challenges:
Automated Tax Filing, Nexus Monitoring, Sales Tax Compliance, Sales Tax Registration
OR EMAIL US