The Uncomplicated Truth about Sales Tax | Online Sales Tax Explained

[@markyfim]

This is the clearest explanation of the sales tax maze I have ever heard. These women don't use a lot of jargon in an attempt to scare you into using their services or courses. Thank you much and God bless you ladies!

[@LedgerGurus]

Glad it was helpful! Thank you for your comment.

[@hello15936]

Hello, I have a question I got confused at the 9:40 mark of the video. If I only sell on amazon and not on my own, or another website do I need to register with the state if I have a nexus there such as inventory there, or pass the sale threshold?

[@LedgerGurus]

Legally yes in some states and report $0 on your returns but practically since your exposure is $0, it’s up to you if you want that administrative burden.

[@ChristyMurphyWriter]

This is the best video ever! Also, as a person studying copywriting, this script is brilliant. Bravo to the person(s) who put this script together.

[@LedgerGurus]

Thank you! We really, really appreciate that!

[@scottsherven9980]

This was an incredible resource on my journey towards launching my online store! Thank you for providing it. Quick question...i've registered my LLC in Virginia because that is where the business will eventually be physically located, but for the next 3-6 months my physical presence is in TN. Should I be registered in both by virtue of physical nexus in both states?

[@LedgerGurus]

We're so glad to help! Yes, you should be registered in TN for now since you're there. You may be able to de-register later when your physical location changes. Call the TN department of revenue to be sure.

[@scottsherven9980]

@@LedgerGurus great - thanks again :)

[@brunoazevedo1322]

Hello, I have a question, I have an LLC that runs a print on demand store, my supplier (Printfull) collects sales tax, but as I haven't passed the Nexus threshold yet, I can't collect sales tax... so I pay fees and I don't collect. How can I reverse this if it is possible? Can I register to collect sales taxes even without having passed the Nexus threshold? because it is very difficult to survive, pay sales taxes on Printfull and not be able to collect. Thanks for the video

[@LedgerGurus]

You may be able to get a resale certificate. Watch this video to see if you qualify: kzbin.info/www/bejne/eZ-Qp6aaaa2fiqc&lc=UgwOuRQQ_4LGvao3ycF4AaABAg.

[@OctPSfever]

Why are you paying sales tax to your supplier when you are reselling to your customers? Its basically double tax. Resale exemption purchase will save your $. Only final end users in the chain will pay sales tax

[@dawnmurphy3444]

Typical with anything the gov't is involved in. What a nightmare this has caused. We are a small manufacturer of fabrication equipment (high dollar) with about 49 employees. We sell through our website and over-the-phone direct to consumers. We also sell to wholesalers and dealers. Within 3 years, we have hit nexus in 20 states. We struggle everyday to handle sales tax with the minimal employees we have. I cannot imagine what we will do when we add another 20+ states over the next few years. SIMPLICITY IS KEY - but I don't think any gov't even knows what that word means! There should have been a flat "online sales" tax that states could either opt in or out of. Those businesses who reached nexus in the states that opted in would then collect that 5% tax and then file ONE TAX RETURN to that state for that amount. The states could then decide on how to "divy" up that money. It should NOT be left up companies to have to create a whole tax department to handle the "thousands" of different tax laws for each state, county and local municipality. 🤬

[@LedgerGurus]

Preach!!! Yes, we agree entirely. We wish it wasn't so insane, but we will help businesses the best we can since it is. Congratulations on the growth of your business. If you're interested in learning how we can take over sales tax for you, click here to learn more: ledgergurus.com/ecommerce-accounting-services/sales-tax/?KZbin&

[@OctPSfever]

Think like US is 50 countries. Each state has different tax law and interpretations. To reduce the pain, consider buying affordable 3rd party software to keep track of sales.

[@michellesharp55]

Im looking into selling print on demand items from printify on a woo commerce website. Does the location of the POD manufacturer create a physical nexus? Would i need to register for each state the POD products ship from?

[@LedgerGurus]

No, because you don't own the inventory.

[@BabyPatriot]

Thanks for the great content! I get a little confused when filing my sales tax returns because I have a website AND I use one selling channel. So when reporting my gross sales to the state, do I leave out the sales that came from the selling channel altogether since they have already collected and remitted sales tax on those sales?

[@LedgerGurus]

I would include everything and take a deduction on sales from marketplace.

[@alanross2876]

any suggestions for sales tax collecting for sellers fulfilling their orders from various Amazon fulfillment centres?

[@LedgerGurus]

As in FBA? Amazon takes care of collecting sales tax for all Amazon sales.

[@alanross2876]

No I mean using FBA to fulfill orders from your own website@@LedgerGurus

[@wazup3333]

​​​@@LedgerGurushow does marketplace facilitator affect NY state certificate of authority and resell permit? If using marketplace facilitator are you not required to have certificate of authority? If you apply for a certificate of authority for reseller permit, and are using marketplace facilitator do you need to report the sales tax to the state???

[@LedgerGurus]

@@wazup3333 Yes, but you'd only have to file $0 returns since the marketplace is collecting and remitting the sales tax.

[@wazup3333]

@@LedgerGurus is it legal if someone is selling only through a marketplace facilitator but doesnt have a certificate of authority?

[@olgarepeshchuk1310]

Sales tax reported in the Liability account on the BS. Not an expense. How about Use Tax? Should use tax to be reported as liability too, with offset to expense? Thank you!

[@LedgerGurus]

Sales tax and use tax are treated the same. Both are liabilities.

[@OctPSfever]

Use tax kicks in for out of state sales. Some vendors dont charge sales tax if they do not have a physical location in that state or dont have sales tax permit. So consumers/end users will have to remit own use tax if it is taxable in that jurisdiction

[@arthurbrown8082]

Please use individual microphones. Room microphones create an echo chamber.

[@LedgerGurus]

Thanks for the feedback. We're always looking to improve our content.

[@joegellert6159]

I am new to selling on Shopify. Do you have any contact number or website to get either one time consultation or full service team? Thank you

[@LedgerGurus]

What kind of consultation are you looking for? The consultations we do are for sales tax or ecommerce accounting. If you're interested in that, let me know and I can send you the details for them. If you're looking for a Shopify setup or selling consultation, we cannot help you with that. You'll have to contact Shopify directly for that one.