How to Get FREE Sales Tax Calculations on Magento
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The document outlines a webinar on sales tax automation hosted by TaxJar, highlighting five essential steps for sales tax compliance: understanding nexus, obtaining sales tax permits, collecting sales tax, reporting collected taxes, and filing returns. It details the complexities of sales tax rates, the differences between origin and destination sourcing, and specific taxability of products in various states. Additionally, it introduces TaxJar's services, including their extension for Magento that offers free and accurate tax calculations.
How to Get FREE Sales Tax Calculations on Magento
- 1. © 2016 Magento, Inc.! Page | 1! Magento Webinar Series! Premier Spotlight!
- 2. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 2! 5 STEPS TO SALES TAX AUTOMATION with MARK FAGGIANO CEOOF
- 3. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 3! With! MARK FAGGIANO! ! Founder and CEO – TaxJar! @taxjarmark!
- 4. © 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+!
- 5. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 5! 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!
- 6. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 6! 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!
- 7. IS WHAT YOU’RE SELLING TAXABLE?
- 14. WHERE DO YOU HAVE NEXUS?
- 15. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 15! NEXUS IS WHEN & WHY YOU CARE! A presence / connection in a state that’s significant enough for you to be required to comply with sales tax law
- 23. GET A SALES TAX LICENSE
- 24. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 24! SALES TAX LICENSES (PERMITS)! • Can’t legally collect sales tax without one! ! • Need one for each state! ! • Most states are free!
- 25. THE ART OF COLLECTING
- 26. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 26! GOLDEN RULE OF TAX COLLECTION! Collect sales tax when the item sold is shipped to a state where you have nexus
- 29. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 29! MULTI-CHANNEL NEXUS! • Nexus for one channel means nexus for! your entire business! • Collect on all your channels for all of your nexus states!
- 30. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 30! 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)!
- 31. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 31! What sales tax rate do you collect?!
- 32. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 32! 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!
- 33. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 33!
- 34. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 34!
- 35. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 35! Some Products are Taxed Differently! CLOTHING! FOOD & GROCERIES! TEXTBOOKS! PRESCRIPTIONS! MAGAZINES! DIGITAL PRODUCTS!
- 37. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 37! 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%!
- 38. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 38! Handling Sales Tax in Magento!
- 39. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 39! 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?!
- 40. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 40! HOW CAN TAXJAR DO THIS FOR FREE?! “TaxJar has saved us dozens of hours a month.” ! ! - Jeff McRitchie, MyBinding.com !
- 41. FILE SALES TAX RETURNS
- 42. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 42! FILING RETURNS! • Filing deadlines usually tied to sales volume! • Annual, semi-annual, quarterly, monthly! • Deadlines typically last 2 weeks of the month!
- 43. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 43! FILING IN MOST STATES SUCKS! • Enter your sales & taxes collected ! for each jurisdiction! ! • Gets worse if you’re multi-channel!
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- 47. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 47! 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!
- 48. Copyright © 2016 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.! Page | 48! Q & A!