The increasing capabilities of online commerce has allowed businesses of every industry to gain a national and even international market, leading to growth and success that would not have been possible decades before. However, changes in legislation could leave online businesses prone to violations and heavy fines if they are unaware or unsure of how they will be affected.
VXL Services Inc. works with online businesses of all sizes to help them understand all sales & use tax regulations and stay in compliance. Our North Brunswick firm works hard to stay alert of all changing legislation and help you identify your responsibilities when it comes to online sales tax. Make sure your business stays on top of its obligations and holds onto its hard-earned capital. Contact VXL Services Inc. for a complimentary consultation today.
How Does Online Sales Tax Work?
Brick-and-mortar businesses have collected sales tax for their state since the 1930’s, yet until recently, online businesses have been free to sell without collecting a tax. After the 2018 ruling in South Dakota v. Wayfair, this has all changed.
Where once businesses needed a physical presence in the state to mandate sales tax, South Dakota and many others have passed regulations to enact taxes on all businesses meeting specific sales thresholds. Each state may determine its own regulations regarding who needs to collect tax and how much, creating a complicated situation for businesses with multi-state sales.
Who is Affected by the New Online Sales Tax Legislation?
As each state rolls out its new regulations for online sales & use tax, any online business with sales in that state will be required to register. If their sales are high enough or frequent enough, they can be required to collect sales tax.
Independent businesses are not the only ones who will have to be aware of the tax laws – individuals who use a selling platform, such as Amazon, Walmart, Jet, Etsy, or eBay, could fall under the same requirements. If you are one of the many FBA (fulfilled by Amazon) sellers, you may need to collect sales tax as well.
Sales & Use Tax Services We Provide
At VXL Services Inc., we’ll work to help you stay informed of and compliant with all regulations. Regardless of your size or market, we’ll handle the complexities of the tax market so you can focus your energy in growing your business.
VXL Services Inc. will work with you to:
Specialized Online Accounting Services
VXL Services Inc. provides experienced accounting services optimized for the modern business. With a secure online platform, exceptional response time, and experience with the needs of online businesses, we are well equipped to serve online companies across the nation and beyond. Let us make you and your business more effective and successful; schedule your complimentary consultation today.