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Level 1

New sales tax for online sales

Hello group,

I am hoping to find answers for the new sales tax law for online sales.  Previously, I only charged sales tax on item sold in my home state.  I am trying to find information of how the new law affects my online sales.  Specifically if I need to start charging sales tax and if quickbooks will offer a new program to automatically add each states applicable sales tax for us.  Also if quickbooks will offer a program or app to calculate and pay individual states.  Any feedback is appreciated.

Michelle

1 Comment
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Level 15

New sales tax for online sales

The new sales tax rules for out of state taxation are overly complicated IMO but something we have to live with.

Each state has or is in the process of, setting up criteria, generally speaking they are doing it where you have to track your sales, and if you exceed the dollar amount OR the number of sales, they set for remote sellers, then you have register for a sale tax permit with that state and from that point on you must collect and remit that states sales tax.

 

Nothing definitive has been heard from intuit on this.

 

Some major online sellers, amazon, ebay, etc in SOME states take it out of your hands and they are collecting and remitting sales tax on your sales.  The stick part is how your state, if you are in those states, want sales tax to other states reported.

 

this page, scroll way down, lists the criteria presently known state by state

https://www.avalara.com/us/en/learn/sales-tax/south-dakota-wayfair.html?CampaignID=7010b000001Y1Na&l...

 

You also need to know what sales tax reporting basis the state requires, yours included as far as I know there is only one state, Texas, that allows the business to decide.

There is also the issue, per state, as to whether the sales tax origin or destination based, or in the case of California a combination of both (and there might be other states like that too)

 

Intuit, avalara, taxjar, only do accrual sales tax

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