Better manage eCommerce sales tax
Have your own eCommerce store? Do you sell in person or at fairs? Do you have nexus in a state that still requires you to file sales tax returns? If so, we have some great news – Seller Ledger now helps you manage sales tax.
While large eCommerce marketplaces like Amazon, Walmart, eBay and Etsy started collecting and remitting sales tax for sellers a while back, there are still a number of cases where you may still need to collect, remit and file sales tax returns.
Top reasons to still deal with sales tax
Online store
If you have a online storefront or website where you sell products or services, you will likely have to collect and remit taxes in states where you have nexus (more on the notion of nexus in a bit)
In-person sales
As with an online storefront, if you sell in person and meet a state’s nexus requirement, you will have to collect, file and remit sales tax.
Zero Dollar returns
Even if 100% of your sales are through marketplaces that remit taxes for you, there are still a number of states that require you (subject to their nexus laws) to file a return stating your gross income, even if you owe $0.00 in sales tax due. Those states include: California, Florida, Illinois, Michigan, Minnesota, Ohio and Texas.
How Seller Ledger Helps
Economic nexus determination
In the old days, before the Supreme Court ruling in South Dakota v. WayFair, the primary way to determine if you needed to collect and remit sales tax within a state was through “physical” nexus – either having a company facility (including Amazon FBA warehouse inventory) or employees located within that state.
However, since the ruling, states have rolled out a number of new ways to require collection and remittance of sales tax, the largest of which is the idea of “economic” nexus. This means, if you sell more than a certain amount to buyers in state, you qualify as having nexus and need to collect and remit.
Fortunately, you don’t need to worry about those thresholds. Seller Ledger tracks all of those rules and will alert you if you have exceeded the threshold in any state, as well as if you are getting close. Just click on the new Taxes -> Sales Tax sub-tab and see a map of the US with any potential nexus states highlighted:
Jurisdiction level reports
Once you’ve determined that you do need to collect and remit sales tax within a state, Seller Ledger will also provide you with the jurisdiction level information necessary to file a sales tax return
What about filing?
At the moment, Seller Ledger does not yet provide electronic filing of sales tax returns. But we have plans to add filing and currently allow you join a waitlist for each state.
Does Seller Ledger offer sales tax calculations?
That is an excellent question. The short answer is – soon. Stay tuned.
Ready to automate your eCommerce bookkeeping?
Join thousands of sellers who save hours every month with Seller Ledger.
No credit card required