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New Year, New Rules – Confirm Your Sales Tax!

Sales tax is changing dramatically. There was a Supreme Court ruling in mid-2018 that stated it is, in fact, legal for states to require out-of-state retailers to collect sales tax on sales to customers within their state. South Dakota was the state at the center of this case, but other states are very quickly following and enacting their own new regulations about who must collect and file sales tax within their states.

Generally, most states require that you have met a certain threshold in terms of either the number of sales within their state or a dollar amount of sales within that state. For example, South Dakota says that if your business’s gross revenues from sales into South Dakota exceed $100,000 OR if your business made sales for delivery into South Dakota in 200 or more separate transactions, you must collect and file sales tax. California and Texas have also recently updated their laws, along with numerous other states who have similar nexus.

So what is a small business to do? First, ZümiFi recommends that you identify a resource that will provide up to date information and monitoring for ALL sales tax changes that may affect your business. This might be your CPA, or you can sign up for a service such as Avalara or even Intuit’s sales tax services. Second, you will want to stay in touch with this resource and make sure that you are aware of any new sales tax obligations you may incur so that you can also update your sales processing systems to ensure you are capturing and collecting those sales tax obligations properly.

Don’t get caught unaware – get on top of your sales tax obligations and make sure you monitor that regularly!

New Year, New Rules – Confirm Your Sales Tax!

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