In this Thrifting For Profit Podcast with Debra Conrad, we discuss … Sales Tax For Your Amazon Business.
Today’s podcast is for Everyone Who Sells Products Online – Amazon, eBay, Etsy as well as your own products sold via Paypal.
The issue of Sales Tax has stopped new business start-up’s dead in their tracks. It’s also given most of us that have been selling for years – a huge HEADACHE.
Today – Mark Faggiano, CEO of TaxJar. is here to help clear up some of the confusion and also talking about a tool that can help streamline the process of Remitting Sales Tax.
Also – Charlene Anderson of Purveyor Of All Things Creative is helping me answer questions on the air and in the chat room.
My Sales Tax Experience Anxiety
I have always filed my own sales tax reports. Our corporation is only required to file once a year… and I felt comfortable with the process (I’ve been doing it for almost 20 years). The process is time consuming, but it was only one day out of each year.
This year was no different than any other year – EXCEPT – my state threw in a tax change in the middle of the year! No huge deal – right? Wrong!
Filling out the form and accounting for the two different sales tax amounts – got the best of me. Somewhere I made a mistake… uggghhh.
About 3 weeks after filing – I get a notice that I underpaid my sales tax a bit. Like – 8 thousand dollars! WHAT?
I didn’t even TRY to fix it myself. I sent all the info over to my CPA and had her FIX my mess.
Not only did I have a few stressful weeks – waiting to see if the TAX People Accepted the amended filing… but it cost me just about as much as TaxJar would have cost me.
Information Provided Is Not Legal Or Tax Advice For Your Specific Business!
Mark IS NOT a tax lawyer or professional tax adviser. He is sharing general information and advise that is solid and up to this time legal. Laws change – you must refer to tax professionals with expertise in e-commerce for your own business.
Please phrase your questions in general terms – so that more than one listener will benefit. We just can’t answer questions that are specific to specific state forms, registrations or filing.
Sales Tax BootCamp Webinar
This webinar covers a lot of great general information about Sales Tax Collecting in a well thought out format:
Prepare Your Business For A Sales Tax Audit
I’ve actually had a Sales Tax Audit in the past. It’s NOT fun! It’s Can Be Painful!
- Keep Perfect Records
- Have your CPA work with the Auditor
I did both… and can’t stress enough – this audit was fairly painless.
Questions For Mark
Nexus and registering for sales tax collection, that will be the biggest part of the show.
Not a Pro Seller On Amazon? Amazon does not help you collect sales tax if you are not a Pro Seller – does this mean you don’t need to collect sales tax?
If you don’t collect sales tax – does NOT mean you won’t OWE sales tax at the end of the filing term.
Many questions answered in this show are broken down into very simple to understand language.
The idea that we all MUST collect and remit sales tax is huge… overwhelming… mind numbing. Calm down… Focus… You CAN Do This important part of your business.
TaxJar.com Is The Powerhouse Tool
Introduction to Sales Tax for Amazon FBA Sellers
This book is still amazing – it’s a great guide for teaching you about setting up sales tax registration etc. in each state:
Okay… Have A Great Weekend and Happy Sourcing!
That’s my story… and I’m sticking to it…
Next week’s show….
Jessica Larrew is back to talk about Selling Groceries that you can find at most retail stores.
Listen live to the show Fridays, 2pm ET at http://thriftingforprofit.com/listen
Yes – Jessica Has A Guide!
This is a great question (quoted from Jessica Larrew’s Grocery Goldmine):
“If you can find very easy to sell, replenishable (easy to find and
buy repeatedly) items, are you willing to take a lower profit margin because of the fact that you can sell as much as you want with minimal work?
The way I look at it, if you can find that item one time and keep selling it over and over, it is worth taking a little lower profit.”