California Sales Tax, Demystified
Presented by Mark Faggiano
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Today’s Agenda
● Who has to collect California sales tax
● How to collect sales tax in California
● Step-by-step guide to filing a California sales tax return
● Questions! (use the chat panel on the left)
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problems for small business!
• Founded TaxJar in 2013
• Not a CPA or tax professional• Talked to thousands of online
sellers, pros, auditors, states
• Here to help you make informed decisions
CALIFORNIA...
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“I want California sales tax to go
away!”– Average TaxJar Customer
WHO COLLECTS CALIFORNIA SALES TAX?
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CHARGE SALES TAX IF YOU HAVE “NEXUS”
A presence / connection in California that’s significant enough for you to be required to comply with their sales tax
law
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
WHAT’S TAXABLE?
• Most tangible items are taxable in CA• Common exceptions are clothing and food
• Services are mostly not taxable in CA• Are the tides changing?
• Shipping, gift wrapping can be taxable
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REGISTERING IN CALIFORNIA• Registering online is easy with one caveat...They
will try to persuade you to register with the CA Secretary of State
• Out-of-state sole-props & LLCs generally not required to register with the Secretary of State
• If you run into problems, call 916-227-6600 for an override
HOW TO COLLECT CALIFORNIA SALES TAX
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How to Charge Sales Tax if You Live in CA
● Charge “modified-origin” or “destination”
● We recommend destination
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Full-Width Image SlideOver 200 sales tax districts in CA!
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How to Charge Sales Tax if you DON’T Live in CA
● Charge “destination-based” sales tax
● Charge at the sales rate of your buyer’s “ship to” address
HOW TO FILE A CALIFORNIA SALES TAX
RETURN
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YOU NEED THESE 4 THINGS TO FILE1.Gross Sales
2.How much you collected for shipping
3.Taxable sales by district
4.Taxable sales by county
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
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Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Regular Slides
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Regular Slides
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Regular Slides
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Regular Slides
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Regular Slides
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.
Helpful resources
youtube.com/taxjarFor visual learners
salestaxcommunity.comTalk with 5,000 other store owners and tax pros!
blog.taxjar.comContent just for ecommerce & sales tax
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TALK TO US!
855-800-6681
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