Automated Sales Tax Compliance for Your PrestaShop Store

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

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4 Steps to Make Your PrestaShop Store Compliant for sales tax across the US

1. Understand How It Impacts Your Business

Registering for sales tax  and collecting tax on your sales to all US states will have a big impact on your business. You must understand your tax exposure and reporting obligations. Our software can automate your tax filings, but there are many practical issues to consider:

  • 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?
  • How do I set up my PrestaShop site to collect sales tax at checkout
  • What if state tax offices ask questions or audit me?
  • What does it mean if I sell via other channels, not just PrestaShop?
2. Register for a Sales Tax Permit

If customers in multiple US states buy from your PrestaShop 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 at Checkout in Relevant States

Since PrestaShop does not have in-built functionality to collect sales tax at checkout, you’ll need to set this up separately.

Once registered for sales tax in a state, you must add tax to the price when you make sales to that state.

You’ll need to import a tax rates database into your PrestaShop back-end or connect to a 3rd party system to request tax rates during checkout.

4. Report, File & Pay Sales Tax in all states

The PrestaShop platform helps you build your eCommerce site, but it was not built to help you file and pay taxes.

You will have to file monthly or quarterly tax returns in the states where you are registered. Tax returns are filed electronically using the relevant state tax office’s filing system – to avoid penalties, you must ensure your returns are filed and paid accurately and on time.

The tax returns are very complicated – sales 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 helps you Collect, File & Pay Sales Tax on your PrestaShop store

It’s hard enough to run a successful online business on PrestaShop 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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Our Clients

Get radiant skin with the luxury skincare range.

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

High Protein, Healthy Chocolate Snacking

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

Premium leather & travel goods.

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

Authentic, dermatologist recommended skincare and beauty products.

Integrations:
Sector:
D2C
Tax Challenges:
Automated Tax Filing, Nexus Monitoring, Sales Tax Compliance, Sales Tax Registration
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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 PrestaShop Store!

Sales tax in the USA is a consumption tax on the sale of goods. If you sell products to US states from your PrestaShop 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. PrestaShop 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.

Does PrestaShop Collect and Remit Sales Tax? 

No, PrestaShop does not collect and remit sales tax on behalf of its sellers. This is because PrestaShop is not a marketplace facilitator, and therefore, does not need to legally automatically charge sales tax on purchases. As a result, PrestaShop sellers are responsible for collecting and remitting sales taxes to the appropriate US states. 

Because of this, sellers may be left overwhelmed or confused by the process of sales tax with PrestaShop. Sales tax is complicated, and doing it alone can be even more so. However, Yonda is here to help. Our team of experts and automation software can make collecting, remitting and filing sales taxes now easier than ever for PrestaShop sellers. 

To get started, simply get in touch.

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