How do I handle sales tax for my online store in the US?

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Expert Bookkeeping Services · Accepted Answer

Sales tax is set by state. After the Wayfair decision, you may need to collect tax in states where you exceed economic nexus thresholds. Use software like your marketplace's collection tools or Avalara/TaxJar and reconcile filings monthly. Nexus is state-specific Physical presence such as stock, employees or an office can create sales-tax obligations even before an economic threshold is reached. Economic nexus tests vary by state and change over time. A marketplace may collect tax on facilitated sales while you still have registration, reporting or direct-website obligations. Maintain a state-by-state review Track sales by destination, product taxability and sales channel. Review thresholds with a qualified state-tax adviser and keep marketplace reports as evidence. Reconcile collected tax to filed returns and payments, and do not assume that an app's calculation settings decide whether registration is legally required.

How do I handle sales tax for my online store in the US?

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Detailed answer

Nexus is state-specific

Maintain a state-by-state review

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