Sales tax concerns if you sell through multiple channels
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
If your business sells a taxable product or service and has nexus in any state, you have a sales tax obligation. That part is straightforward. But as your business evolves, and as state and local tax laws change, you must stay informed and proactive to avoid compliance issues.
Last time, we explored how problems with your billing system can lead to sales tax trouble. Now, let’s look at another often-overlooked risk: your tax calendar.
Once you've collected sales tax, you're responsible for reporting and remitting it to the appropriate jurisdictions. That process starts with sales tax registration, and it continues with maintaining a tax calendar.
This dynamic document helps you manage your monthly, quarterly, or semi-annual tax reporting and remittance obligations. But with dozens of due dates across jurisdictions, it's easy to miss something, especially with an outdated or inaccurate calendar.
A tax calendar that’s no longer current can cost your business in:
At TaxConnex, we often see avoidable calendar-related mistakes, such as:
As a growing business, you may also trigger economic or physical nexus in new jurisdictions every month. That means collecting tax in places where you haven’t yet registered to remit. If your calendar doesn’t reflect this, you’re opening the door to compliance problems.
It’s also important to only register in jurisdictions where:
Keep in mind that different tax types require different returns. For example:
A well-structured tax calendar includes key details like:
Your tax calendar should be updated monthly and integrated with your billing system. That way, you can ensure that every dollar of sales tax collected is tied to a specific jurisdiction and an active return on your calendar.
In future blog posts, we’ll explore more pitfalls of sales tax compliance, including general ledger (G/L) management, return submission, and lack of oversight.
Want to learn more now? Watch our on-demand webinar:
Don’t Test Your Luck: The Pitfalls of Sales Tax Compliance.
TaxConnex helps businesses like yours maintain tax calendars that keep up with changing regulations. If you're unsure whether your current calendar is accurate or complete, Get in touch with us today. We’ll help you stay compliant and avoid costly tax mistakes.
Businesses have new ways to sell today, as marketplaces such as Amazon, TikTok and the business’s...
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