Sales Tax Boot Camp for Zoey Partners
Transcript of Sales Tax Boot Camp for Zoey Partners
with LIZZY GREENBURG FROM TAXJAR
% %% % %
%%%
SALES TAX BOOT CAMP FOR ZOEY
PARTNERSYour Guide to Understanding & Managing Sales Tax
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
GOALS
• Cover some tax basics• Resources for help in the future• Questions!! (use the chat section to the left)
3
QUICK INTRO:
• Passion: using tech to solve problems for small business!
• CA and TX Sales Tax payer since 2004
• Not a CPA or tax professional• Talked to thousands of online
sellers, pros, auditors, states
• Here to help you make informed decisions
“I want sales tax to go away!”
– Average TaxJar Customer
SALES TAX BASICS
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
CHAOS PREVAILS
• No federal laws or governing body (yet)
• 45 states (and DC) = 46 sets of laws• Nexus• Taxability• Rates• Due dates
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
WHAT’S TAXABLE?
• Tangible items are taxable• Common exceptions are clothing and food
• Services are mostly not taxable• Are the tides changing?
• Shipping, gift wrapping can be taxable
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
WHAT’S TAXABLE?
• Tangible items are taxable• Common exceptions are clothing and food
• Services are mostly not taxable• Are the tides changing?
• Shipping, gift wrapping can be taxable
”“
10Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
”“
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
”“
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
”“
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
”“
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
”“
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
PASS-THROUGH TAX
• Pay what you collect
• Never pay out of pocket!
• Sellers are ‘collection agents’
Starting is the hardest part.
Sales Tax CAN Be Automated!
17
WHAT THE HECK IS NEXUS?
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
NEXUS IS WHEN/WHY YOU CARE
A presence / connection in a state that’s significant enough for you to be
required to comply with their sales tax law
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
WHEN SHOULD I COLLECT SALES TAX?
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
GOLDEN RULE OF COLLECTION
Collect sales tax when the item sold is shipped to a state where you have nexus
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
MEET JOE SELLER
• Based in Akron, OH
• Only has nexus in OH
• Complying in 1 state
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Akron, OH Lakewood, OH
Collect sales tax
NEXUS SALE
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Collect sales tax
REMOTE SALE
Waltham, MAAkron, OH
HOW MUCH SALES TAXSHOULD I COLLECT?
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
COLLECTION LOGIC: SOURCING
• State where item is shipped determines tax rate
• Tax rate usually = sum of applicable rates• State• Local• Other (i.e., education, transportation)
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
ORIGIN VS. DESTINATION SOURCING
• Origin-based state• Tax rate = seller’s location• One rate for entire state
• Destination-based state• Tax rate = where item is shipped• Variable rate
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
CA SCHEDULE B
3/2/16 36Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
SELLING ON ZOEY& SALES TAX
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
SALES TAX ON ZOEY
• Manage tax rates by country, state, and zip code
• Apply rates to specific product and customer classes
• Import rates manually with a CSV or spreadsheet
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
SALES TAX ON ZOEY
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
SALES TAX ON ZOEY
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
FIND TAXJAR ON THE APP STORE
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
ZOEY + TAXJAR• Add TaxJar from the Zoey App Store
• Follow the guide at http://support.zoey.com/docs/taxjar
• Sync your orders with TaxJar for automated sales tax reporting and filing.
• We’ll automatically import and refresh your tax rates each month for accurate calculations.
STEPS TO FILING
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
FILING TO THE STATES
• Your frequency is tied to how much you collect• The more taxes collected, the more often you file
• Frequencies• Annual• Quarterly• Semi-Annual• Annual• Fiscal Annual
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
COMMON PITFALLS
• Not collecting taxes on every channel
• Not collecting accurately across channels
• Not enough time to keep up
HOW ARE YOU FEELING?
3/2/16 47
HOW DO I EVEN GET STARTED?
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Painless sales tax automation for online sellers
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Connect your eCommerce provider
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
See your sales tax collected by state
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
View where you might have nexus
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.54
View sales tax collected by jurisdiction
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.55
Are you collecting the right amount?
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.56
AutoFile: Let TaxJar file your return
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
More than 7,000 happy customers, including...
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Helpful resources
youtube.com/taxjarFor visual learners
salestaxcommunity.comTalk with 5,000 other store owners and tax pros!
blog.taxjar.comContent just for ecommerce & sales tax
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
TALK TO US!
855-800-6681
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
❖ 30-day free trial (no credit card required)
❖ Monthly or annual subscriptions
❖ Pricing based on transaction volume
• Starts at $19/month for 1k transactions
• $19.95 per AutoFile return
Get Started…FOR FREE!
www.TaxJar.com
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
PRICING TIERS
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
PRICING TIERS
WE LOVE QUESTIONS!
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.