How to Get FREE Sales Tax Calculations on Magento

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5 STEPS TO SALES TAX AUTOMATION

with MARK FAGGIANO CEO OF


With!MARK FAGGIANO!!Founder and CEO – TaxJar!@taxjarmark!

© 2016 Magento, Inc.! Page | 4!

Magento Premier Technology Partners!

Premier Partner! Technology! Total Customers!

Braintree & Express Checkout! 184,000,000+!

Email Automation Platform! 7,500+!

Automated Sales Tax & Free Tax Calcs! 5,000+!

Natural Language Site Search! 300+!

Software Analytics! 250,000+!

Content Delivery Network!Platforms & sites such as GitHub, New Relic,!

Twitter, Vimeo, etc.!

Shipping Platform for Commerce! 55,000+!


AGENDA!

•  The 5 steps to sales tax compliance!

•  Why charging the right amount of sales tax is so complicated!

•  The anatomy of a sales tax rate!

•  Magento sales tax collection the easy (and free) way...!

•  Q&A!


5 STEPS TO SALES TAX COMPLIANCE!

1.  Know When you Have Nexus!

2.  Register for a Sales Tax Permit!

3.  Collect Sales Tax!

4.  Report how Much You Collected!

5.  File Your Return!

IS WHAT YOU’RE SELLING TAXABLE?

WHERE DO YOU HAVE NEXUS?


NEXUS IS WHEN & WHY YOU CARE!

A presence / connection in a state that’ssignificant enough for you to be required to

comply with sales tax law

GET A SALES TAX LICENSE


SALES TAX LICENSES (PERMITS)!

•  Can’t legally collect sales tax without one!!

•  Need one for each state!!

•  Most states are free!

THE ART OF COLLECTING


GOLDEN RULE OF TAX COLLECTION!

Collect sales tax when the item sold is shipped to a state where you have nexus


MULTI-CHANNEL NEXUS!

•  Nexus for one channel means nexus for!your entire business!

•  Collect on all your channels for all of your nexus states!


WHAT’S THE CORRECT RATE?!

•  Buyer’s state determines tax rate (sourcing)!!

•  Tax rate usually = sum of applicable rates!•  State!•  Local!•  Other (i.e., education, transportation)!


What sales tax rate do you collect?!


ORIGIN VS. DESTINATION SOURCING!•  Origin-based state!

•  Tax rate = seller’s location!•  One rate for entire state!

!•  Destination-based state!

•  Tax rate = where item is shipped!•  Variable rate!


Some Products are Taxed Differently!

CLOTHING! FOOD & GROCERIES! TEXTBOOKS!

PRESCRIPTIONS! MAGAZINES! DIGITAL PRODUCTS!


CLOTHING TAXABILITY IN NY!Sales Tax on a $109 pair of jeans!

Jurisdiction! Tax Rate!

New York! No tax!!

Putnam County! 4%!

Metro Commuter Transit District Tax!

0.0375%!

Total! 4.0375%!


Handling Sales Tax in Magento!


TAXJAR’S SMARTCALCS FOR MAGENTO!Install our extension & get FREE, accurate calculations!!

ü Origin vs. Destination & sourcing rules!

ü  Local rate !

ü  Shipping taxability !

ü  Product taxability!

ü Updated rates be free?!


HOW CAN TAXJAR DO THIS FOR FREE?!

“TaxJar has saved us dozens of hours a month.” !!- Jeff McRitchie, MyBinding.com !

FILE SALES TAX RETURNS


FILING RETURNS!

•  Filing deadlines usually tied to sales volume!

•  Annual, semi-annual, quarterly, monthly!

•  Deadlines typically last 2 weeks of the month!


FILING IN MOST STATES SUCKS!

•  Enter your sales & taxes collected !for each jurisdiction!!

•  Gets worse if you’re multi-channel!

FREE eBook !Salestax101.com!


HELPFUL RESOURCES!

•  youtube.com/taxjar!•  For visual learners!

!•  salestaxcommunity.com!•  Talk with 5,000 other store owners and tax pros!!!blog.taxjar.com!

•  Content just for ecommerce & sales tax!


Q & A!

How to Get FREE Sales Tax Calculations on Magento

Education

Transcript of How to Get FREE Sales Tax Calculations on Magento