What you aren’t is a tax collector. But when you’re an online seller, collecting, remitting and filing sales taxes is something you just have to do. Because getting sales taxes wrong can have serious repercussions for your business, ranging from fines to audits and penalties.
However, getting sales taxes right can be more difficult and time-consuming than you might think. Sales taxes are administrated by states and localities, so each place where you have customers can have different rules for sales taxes.
Figuring out your sales tax nexus, or which states require you to collect sales taxes, is complicated enough and can require a lot of research. But then you have to make sure you are charging the right sales tax rates in the states where you do have nexus. (more…)