There are many ways to establish sales tax obligations and each state determines its own rules. If you have a storefront, inventory storage, a warehouse, employees, or other physical presence in a state, you may have nexus.  And even in states where you don’t have a physical presence, you can create nexus by meeting a certain threshold of transactions or sales, or by working with business affiliates. 

Basics of Ecommerce Sales Tax

Understanding Ecommerce Sales Tax Compliance

Ecommerce is an increasingly vital channel for many businesses looking to sell their goods or expand into new markets. Equally important, but often underestimated, is managing the sales tax compliance and obligations that go along with selling online.  And for B2B sellers, the need to manage exemption certificates is critical to maintaining sales tax compliance, but can pose a customer service challenge.

Tax compliance is complex enough between states. But if you’re taking your business to international markets, things are about to get a whole lot trickier.

How Avalara Can Help

Avalara provides solutions that help manage accurate calculation and filing of sales tax, as well as management of other important documentation such as certificate capture. Its solutions can help automate accurate sales tax calculations and filings.

It’s up to you to make sure you’re following the rules in each jurisdiction, but Avalara can help you keep up.  To help with the effective management of sales & use tax compliance within Zoey – including rate determination, exemption certificate management, and returns preparation & filing – we’ve developed a certified integration to Avalara AvaTax, a leading cloud-based solution for tax compliance automation. 

If everything feels a bit uncertain, you can see what your potential issues might be by getting a free sales tax risk assessment. It will have you provide some information that can help determine where your sales tax obligations may be and how to move forward.

And if you’re interested in learning more about how Avalara can benefit your business, you can request a consultation through the Avalara website.

Learn More Through This Whitepaper

When you change where and how you do business, you can also change where and how you need to collect and remit sales tax. And while more sales and customers are bonuses, more work required to keep you sales tax compliant isn’t much of a perk.

Often, companies don’t realize they’re creating risk from these growth activities. However, state auditors are on high alert now that economic nexus is in effect, so chances are, if your business is changing, they’re aware of it.  

In 5 Ways Growth Complicates Sales Tax from our partner Avalara, learn how compliance can change when you: 

• Expand into more states or enter global markets 
• Sell through ecommerce sites or online marketplaces 
• Add new products or services 
• Seek financing, IPO, or engage in M&A activities 

And learn what you can do to prepare for sales tax fallout from growth activities, so it doesn’t stall your plans! Download your copy today: