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Online Sales Tax Rules
Effective June 21, 2018, online retailers might need to collect sales tax for the state to which they SHIP their products. The Supreme Court ruled that online retailers can be required to collect sales tax in states where they do not have a physical presence. As stated on nolo.com: “If you are selling on the Internet to states around the country, you now will need to be aware of which states have enacted laws requiring the collection of sales tax by online sellers.” Each state must pass its own laws regarding sales tax, and it is the job of retailers to know when and where to collect the tax, along with how much to collect.
If that weren’t bad enough, you also need to file the tax with said states. It would be wise to speak with your accountant or book keeper to see if they can offer assistance.
Currently, there are several groups, including an Ebay coalition, that are petitioning the government to reverse the decision. So, there is a chance that it will be repealed. We aren’t placing much, if any hope in that, however, as Walmart and Amazon already comply, so the government has no incentive to repeal. Websites may choose to ignore the law, however, over time, the fines are nasty. A $10 tax bill, unpaid for 10 years, could get you for $1000 and it is NOT dismissable in bankruptcy.
CourseVector recommends and uses WooCommerce for our eCommerce clients. They have very robust tax settings within their program. However, online retailers still might need sales tax software to keep current on which states are requiring sales tax collection. If you need assistance in helping any of your clients comply let us know and we can help.