Sales tax can be a tricky subject and sales tax doesn’t have basic rules. However, below you will find three rules when it comes to sales tax that all sellers have to manage. Keep reading 3 rules of sales tax for today’s online sellers to find the three rules.
Rule #1: All States Have a Different Sales Tax
This means that every single state’s rules are different when it comes to sales tax. The reason is it is controlled by the state. Each state decides how and what it wants to tax. Like what items have tax and which don’t. Also, in most states, different areas of that state are allowed to raise the tax. Don’t assume that state tax is the same everywhere.
Rule #2: The More Things Sold, the More Often You File
When it’s determined you have a sufficient physical presence and you have registered for your sales tax permit, the state you are in will tell you how often you need to file taxes. This means you’ll have to file sales tax returns monthly, quarterly, semi-annually, or annually. The rule is the more you collect, the more often you will need to file a return.
Rule #3: The Rules Can Change
You want to make sure you are periodically checking into your state’s tax rules. This is because the rules do change. For example, an item that used to be taxed is not being taxed anymore or an item that was never taxed is now being taxed. Online tax laws are changing as well. You’ll probably see sales tax on the internet popping up in the news soon.
Rule #4: Automate to Save Yourself Some Time
Technology is a great way to save yourself some time when it comes to filing and charging sales taxes. Doing this means you’ll never have to worry about charging the right rate. Also, automating sales tax reporting and filing means you’ll never have to worry about dealing with tables, spreadsheets, and/or missing the filing due date.
There are 3 rules of sales tax for today’s online sellers! Now that you know the rules of sales tax for today’s online sellers it’s time for you to write them down and keep track of them! Make sure you research your state to see what rules your state has. Are you going to do some more in-depth research on sales tax? Do you already know everything you need to know? If you do let us know in the comments! Stay up to date on our blog for more tips, ideas, and inspiration!