82 Costly Sales Tax Registration Mistakes to Avoid


Your Steps to Simplify Your Sales Tax Compliance.

We created this new report recently for new e-commerce sellers looking to get into compliance with sales tax and are at the stage to get registered for sales tax in many states. This content is covered in various parts inside your Sales Tax System membership.

We wanted to share this report for you also as it is a great reference guide as you get into compliance with more states where you have physical or economic nexus.

8-Step Sales Tax Permit Registration Process

8-Step Sales Tax Permit Registration Process

Our special report, “82 Costly Sales Tax Registration Mistakes to Avoid.” All will cost you valuable time, money and frustration.

When it comes to sales tax compliance there are many steps before you remit sales tax and work with one of them many remitting companies. Sales tax registration is one of the areas that can suck up so much of your valuable time if you make these costly mistakes. Attempting to call the state’s department of revenue for support will lead to hold times of 45 + minutes or longer or a message that says the state is at capacity and no longer taking any more calls today. This is all very frustrating, and we would like to help you avoid wasting your time. Our special report will guide you through all the costly mistakes we have encountered over the past 4 years with the thousands of applications we have processed for e-commerce sellers.

In the end, if you decide to register for sales and use tax on your own, we hope our report saves you some valuable time. If you need support and would rather focus your time on growing your business, below our best options to get you register and help you with sales tax compliance.

When it comes to sales tax compliance as e-commerce sellers, there have been several changes since 2018.

You have likely heard of the sales tax compliance changes since the big June 21, 2018 U.S. Supreme Court Decision 5-4 Favors South Dakota vs Wayfair!. This case overturned the physical presence standard requirement from the Quill case dating back to 1992. Now (January 2019), over 44 states have new economic nexus standards (more on this below). Ther are also 38 markplace nexus states where Amazon is collecting in 34.

Attention Amazon FBA sellers: If you are selling on Amazon FBA, you likely received an email from Amazon that they have received a valid and binding agreement from the California Department of Tax and Fee Administration (CDTFA) to turn over seller’s business information (October 2018, with the deadline for January 15th, 2019 to get registered). If you missed the deadline, California will be sending more notices. 

Both these situations, now means that sales tax compliance is more important than ever before. No longer is it just about physical presence (with stock or inventory).

Even if you don’t have a physical presence in a state that once you reach a threshold of sales or transactions ($100K and as low as only 100 transactions) in some states, you will be required to collect and remit sales tax to the state. This is in addition to the nexus created as an FBA seller with your stock (note: the trend is that some states are dropping the transactions which are good news for sellers).

If you have been selling for more than 6 months and have NOT yet COLLECTED or REMITTED sales tax, we have some bad news.

The bad news is that you owe sales tax plus penalties and interest totaling up to 10% of every sale in each state where your business has sales tax nexus. If you have not collected sales tax from your client you will need to pay this out of your own pocket. The good news is that this is a very common problem and as a Sales Tax System member you have access to the tools and resources to get you back on track so you can move forward and have your customers pay sales tax.

Perhaps you reach out to us looking for support with sales tax permit registration, strategy support on the best way to move forward when behind on sales tax, an analysis of your liability or perhaps a U.S. entity or virtual address before you apply for permits. In any situation, we will be able to help you, and as a client, we have several powerful vetted resources to support you also.

Sales Tax Registration Options:

Before we register for sales tax permits, do you know which states you have nexus (either with FBA stock or economic nexus)? If no, we have support options for you:

Sales Tax System has our sales tax permit registration packages available. Learn more at this link.

Ready to Move Forward to Order Sales Tax Permits and Get Registered in the States You Have Nexus?

How to Get Registered to Collect Sales Tax:

You have access to all our expertise and training for the required steps before and after applying for sales tax permits. This includes access to our sales tax calculator to help you determine your past sales tax, penalties plus interest due, how to move forward when behind on sales tax, which states to wait to register, which states require foreign qualification after applying for permits, setting up tax accounts, and access to our sales tax registration services and bundled packages.

Sales Tax Permit Fees, Process and Time Frame:

As a Sale Tax System sales tax permit registration client, you have access to our popular bundled packages per state sales tax permit service. Here is our sales tax permit process, which will help answer your questions on process, and time frame.

The Process After You Order:

When you use our sales tax registration service, you will be emailed the next steps which including completing our sales tax system agreement and our sales tax application. Our sales tax application is where you will select the state(s) you want us to register your business for sales/use tax. Our sales tax application has written and video instructions to simplify the information we need to get your business registered.

Our goal to help you get back quickly focused on growing your profits, not on sales tax compliance.