UPDATED End-of-Year Sales Tax Checklist for Online Sellers (2023)

TL;DR

Prepare for 2023 sales tax compliance by reviewing Nexus, product taxability, exemption certificates, use tax, Colorado's delivery fee, international sales, renewals, and aggressive states.

Transcript

online Sellers and e-commerce business owners let me give you a complete checklist for your sales tax compliance going into 2023 there are nine points so stay until the end because at the end of this video I'm going to tell you from our experience I'm working with so many clients what are the aggressive States and the States you need to look out fo... Read More

Key Insights

• 👣 Review Nexus footprint for 2023 sales.
• ❓ Update product taxability knowledge.
• ❓ Collect valid exemption certificates.
• 😒 Monitor use tax obligations.
• 🤱 Stay informed about Colorado's delivery fee.
• 📏 Understand rules for selling internationally.
• 🚕 Renew sales tax registrations annually.

Questions & Answers

Q: Why is it essential to review your Nexus footprint for sales tax compliance?

Reviewing your Nexus footprint helps determine where you need to register and collect tax based on sales thresholds in different states, ensuring compliance with sales tax laws.

Q: Why should e-commerce businesses review product taxability?

Product taxability reviews are crucial to avoid unintentionally collecting or not collecting tax on certain items, especially with updated tax laws and exemptions for various product categories.

Q: Why is collecting exemption certificates important for sales tax compliance?

Collecting valid exemption certificates protects businesses from audits as they prove that tax was not collected for a legitimate reason, such as reselling the product or being a tax-exempt entity.

Q: How does use tax impact e-commerce businesses?

E-commerce businesses must report use tax on products used internally or for promotional purposes, ensuring compliance with tax regulations and avoiding potential audits.

Summary & Key Takeaways

• Review your Nexus footprint for 2023 sales.

• Check product taxability and update exemptions.

• Collect all necessary exemption certificates to avoid audits.