If you sell over the internet you may soon have to collect sales tax. Congress is considering legislation authorizing states to require out-of-state business selling to collect sales tax. This would require remote businesses to collect and remit sales tax according to local tax law.
If you are a remote seller you will have to:
- Calculate and collect the correct sales tax on each sale. This is based on what you are selling and where you are shipping the merchandise.
- Remit the collected taxes to the appropriate taxing authority at the right time.
There are many solutions available to automate these tasks – both in-house software and SaaS solutions. The best of these are designed to work with the most popular ERP and shopping cart systems for small business, including Sage Software and QuickBooks.
SaaS solutions are particularly well suited to this task. SaaS vendors have developed systems and infrastructure to monitor changes in local tax rates and filing requirements. Their software is designed to calculate the right sales tax on each internet sale, remit the total taxes collected to the appropriate taxing authority and account for the entire process at every step.
If you have questions about this contact Jim Stern at firstname.lastname@example.org
Disclaimer: All content provided in this article is for informational purposes only, and is subject to change. Contact a DS+B professional before using or acting on any information provided in this article