Internet Sales Tax
Collecting internet sales tax is more important than ever for an e-commerce business and with the right tools, it couldn’t be easier. Create your own online store with the sales tax software built into the checkout to automatically apply website sales tax to the appropriate customers.
Internet Sales Tax
Sales tax, which was something often ignored by e-commerce businesses in the past, is now becoming more and more difficult to ignore. Many states are realizing that they are losing out on millions of dollars worth of sales taxes each year due to online purchases and are now cracking down on online stores and forcing them to collect.
So what exactly happens to an e-commerce business that does not collect sales tax from applicable customers? The consequences can be disastrous for your business. If the government finds out, they will audit your business and require you to pay a percentage of tax owed as well as interest on the amount owed and penalties for each year that you did not collect.
You may be asking yourself what the exact regulations are for collecting sales tax. Generally speaking, e-goods do not require sales tax. If you sell tangible goods, you must check state regulations for the following, your actual business location, location of your drop shipper as well as merchant account provider, fulfillment center, and where your sales representatives operate from.
An e-commerce business owner is required to do the following. Research which states the business is involved in and register with that state to collect taxes. Then use a reliable e-commerce shopping cart software to automatically collect sales tax through the online store, and when it comes time, file the tax return with all the proceeds.
What you need is an e-commerce solution that has a built-in sales tax wizard that you can set up in the store admin, has the ability to set percentage of tax collected at a state, county or zip code level. Mark down products that are nontaxable. Choose if tax is inclusive or exclusive of product pricing Choose to apply tax before or after discounts. Create customer groups that may be exempt from being taxed and even supports the Canadian taxation system.
Core Commerce comes with all of the necessary features to help your business set up and collect sales tax from applicable customers. With design tools to set up your store in minutes, a full list of growing features at your disposal and superior support, it’s no wonder they are rated one of the best e-commerce solutions. Try it absolutely free for 15 days without giving them your credit card information.
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