Selling Online for the First Time? What About Sales Tax?
By: Lindsay Sisk, Gable Tax Group
When starting a business there are so many things to worry about, marketing, sales, brand recognition, manufacturing, the list is endless. But when selling your product online, how do you know when to charge, collect, or calculate sales tax?
For smaller companies, it may not dawn on you that you are required to collect sales tax, for other businesses you may think since your product is exempt from sales tax a permit may not be required. However, when conducting business in a jurisdiction, if you meet the nexus requirements for that jurisdiction, you are required to a file a return, regardless of sales tax collection.
Have you reached out to your CPA with sales tax questions, only to find out you may not be getting the right advice? Are you a new company, and haven’t delved into the sales tax world previously? Hiring a Sales Tax Specialist may be your best bet, and here’s why:
Sales Tax Specialist’s focus specifically on sales tax laws and tax return preparation. It’s what they do best!
Your CPA is typically focused on income tax and other general tax matters, but your Sales Tax Specialist is a subject matter expert in Sales Tax only. Let the right experts do what they are best at!
When hiring a Sales Tax Specialist, you can save money on potential audit assessments, late filing penalties, and possibly additional tax owed when not collecting or calculating the correct amount of sales tax.
Unlike income taxes, you are not able to file extensions for sales and use tax. Therefore, since most of the tax returns are due on the 20th of the month, that means you have less than 3 weeks to prepare and file all your sales tax returns.
So where do you go from here? If you are a new business and don’t know if you have a sales tax obligation or if you are already collecting sales tax but are unsure if you are doing it correctly, Contact Us!
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