Collecting Ecommerce Website Internet Sales Tax

광고 Internet sales tax is now becoming an integral part of an online retail business, but that hasn’t always been the case. Back in the early days of ecommerce, customers and retailers were both able to enjoy avoiding this tax. Regulations were almost nonexistent at the time and online shoppers have gotten used to not paying website sales tax. As a result, e-commerce businesses began growing exponentially taxai.

Unfortunately all of that is about to come to an end. Many states are starting to set regulations and cry foul over the loss of billions of dollars in tax revenue from past years. Retailers without a web presence are also arguing that online retailers have an unfair advantage, because they are not required to charge the same tax. Both parties are demanding a new national internet sales tax to be enacted.

For now, the majority of states only require online retailers to collect internet sales tax from consumers who reside in the same state as the physical location of their business. Some states have stricter rules and take into consideration merchant account, distributor, warehouse, drop shipper and sales representative locations also. It’s important to go over the tax regulations of all the states with any kind of connection to your business. If you fail to pay the required taxes, there will be consequences that could significantly hurt your business. Not only will you have to pay the amount you owe, but also the interest and penalties for each year that you did not pay.

Here is a checklist to get started:

Review the regulations of each state that your