Ecommerce Sales Tax Guide:
Should You Charge
In the United States, sales tax is governed at the state level. There is no “national” sales tax law in the U.S.
Thus, many online sellers find themselves dealing with different sales tax laws and rules across multiple states.
As an eCommerce business, if you are responsible for sales tax in a state, it is your responsibility to charge your buyers the correct amount of sale tax. It’s also your duty to remit the taxes collected back to the state.
The basic rule for online sellers when collecting sales tax is:
- Your business has sales tax nexus in the same state as your customer.
- You’ll always have sales tax nexus in your home state. (*Certain business activities create sales tax nexus in other states, too.)
We were led to Fully Accountable because we do not have an internal finance team and we do not have the ability to accurately track our financials in such a way that enable us to make business decisions and we sought Fully Accountable because of their expertise operating as CFOs and operating as CPAs to help us create financials in such a way that we are able to make better business decisions with the numbers.
I didn’t want to sit there and do the mundane tasks of the bookkeeping and, I didn’t want to task it to anyone in the office because we like to keep it really lean here. So it was very fortuitous that we came across Fully Accountable to be able to have all the services of a CFO from a virtual standpoint.
The main problem that led us to Fully Accountable was not having any robust accounting and reporting systems. We were having the accounting done at the end of the year by our CPA. Then we’d get hit with a big tax bill we weren’t ready for. It wasn’t until we connected with Fully Accountable that we had intelligence applied to our financial systems.