I’m pretty set with sales tax on Amazon. However, if I expand to Walmart, and Jet, then it gets more complex. For example, I think I have to understand if I have economic nexus in a state, and then include my sales among Amazon, Walmart, and Jet into all that, and then actually file the sales tax.
I’m only a $600,000 seller at this point, so running on shoe-strings. How do you incorporate all that cost-efficiently and what software do you use for automation?
Dan
We firmly believe that the marketplaces should be doing filing for sellers of that size and that you should only have to file in your home state. That said, what we believe doesn’t really matter and you shoul dof course consult with your accountant.
There are software tools to help (TaxJar, Avalara, etc), and accountants to file for you in the various states. However, there isn’t a super inexpensive way to do this.
So are you saying you don’t pay sales tax for marketplace sales, except in your home state? I’ve heard of other sellers who think that, but legally, it doesn’t sound like it would hold water if any state in particular decided to go after you for that. Now that I’m scaling, I can see the argument for your approach.