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That's still difficult to comply with. Imagine 50 different laws like that, each with their own tiers, and consider the difficulty accounting for them all and s
by WiseWeasel 8y ago
That's still difficult to comply with. Imagine 50 different laws like that, each with their own tiers, and consider the difficulty accounting for them all and staying in compliance. That's not even getting into municipal taxes.
- cm2012 8y agoShopify/BigCommerce/Authorize.net/eBay/Amazon, etc. will handle it for you. Everyone uses SaaS software at some point in the process nowadays.
- jakejohnson 8y agoYes, those platforms may handle sales tax calculations automatically for you for their specific platform. That's only the very first step. Merchants will then need to report and remit their sales tax to each state. If those platforms plan to handle the entire process, trust me they have a ton of work ahead of them if they decide to handle it in-house.
- ISL 8y agoThe remittance is the key, and part of the reason that I've only ever partnered with other companies that can handle that sort of thing.
- URSpider94 8y agoNote that popular services TaxJar and AvaTax will do automated filing for you as well.
- watchdogtimer 8y agoWe don't. We're one of those mom-and-pop businesses that uses a self-hosted shopping cart, and use Braintree as our payment processor which has no sales tax recording system that I'm aware of.
- ahallock 8y agoArguments like this annoy me. Someone has it figured out so it's OK for these complex tax implementations to exist. No, it's not OK, and it's not a solved problem. We recently implemented sales tax collection using the TaxJar API combined with Stripe. It took at least a month to integrate. These integrations are huge drains on business productivity. Government has to stop creating these complex rules. Create simple rules and stop treating everyone's time with such reckless abandon.
- anonymous5133 8y agoThe problem is each government wants to make rules of their own and no one can agree to streamline. Then comes the issue with democrat and republican politics. Republicans will want low tax and little services while democrats the opposite. Good luck getting them to agree. The end result is smaller busineeses get stomped. Only solution i see is to streamline it with software. Software is getting easier to use so hopefully it becomes less burdensome.
- gist 8y agoNot to mention remitting the money to the proper place. Not a trivial matter at all.
- anonymous5133 8y agoAvalara has automated return filing.
- saugnsckuigfh 8y agoWhich is why the issue remains, as it has been since Quill, the extent of the seller's contacts with the state. If you're making $100k to each 50 states, then you've got $50 Million in Revenue and can afford to do it. If you've sold 10 t-shirts at $20 a piece, then your total sales of $200 isn't worth bothering with. If we want there to be problems we can certainly create them, but doesn't seem all that complicated if we want it to work.
- rrdharan 8y agoYou mean $5M not $50M.
- Retric 8y ago100k * 50 = 5M @ 2% profit margin that's 100k per year. Enough to live comfortably on, but not exactly a big money. Further, the ruling applies to all taxes and has no cutoff under 100k/year required.
- joemi 8y agoI'm curious where your 2% margin came from in this estimate. From what I can tell, that number is often quoted as Amazon's profit margins, but I'm not sure smaller more-specialized online retailers necessarily need to match Amazon's low margins.
- Retric 8y agoIf you are manufacturing something then the profit margins can be much higher. However, for retail 2% is fairly solid and likely above average when you include people losing money, but not outstanding.
- markdown 8y ago> If you're making $100k to each 50 states, Isn't it $100k or 200 transactions? 200 transactions is just 17 customers with a year of monthly subscription payments.