Editor’s note: Mark Faggiano is the founder and CEO of TaxJar
Everybody knows that April is income tax month in the U.S. So it can be easy to forget that April is also what we here at TaxJar refer to as a “sales tax perfect storm.” Not only do you have to deal with income taxes due on April 15th, but nearly every online seller also has a sales tax deadline in April. It’s almost too much!
I’ve written here before about How to Wrangle Sale Tax (The Easy Way). Today, I want to make sure you avoid a few common sales tax pitfalls that just might trip you up in April. Do this for a successful sales tax filing:
1.) Know Your Sales Tax Due Dates
While the income tax due date is always April 15th, every state is different when it comes to sales tax due dates. Some want to hear from you on the 20th of the month, some on the 15th, some on the last day. To keep you from filing late, we’ve put together a list of April sales tax due dates by state.
2.) Tally Sales Tax Collected on Every Channel
Most sellers these days sell on more than one shopping cart or online marketplace. When getting ready to report how much sales tax you’ve collected, be sure you’re counting every channel you sell on. A sales tax automation app like TaxJar will connect with all your carts and platforms, so you can be certain you’re reporting all the sales tax you’ve collected.
3.) File on Time
Failing to file on time can come with a whole host of problems – everything from a late fee to interest accruing on the sales tax you owe, or having your sales tax license revoked! Be sure to get your sales tax filing paid before the deadline.
4.) File “Zero” Returns
Didn’t collect any sales tax this period? File anyway! Most states require you to file a “zero return” even if you don’t have anything to report. Florida, for example, will charge you a $50 penalty for failing to file, even if you don’t owe a penny!
5.) Don’t Forget Sale Tax Discounts
About half of the 45 states (plus D.C.) that have a sales tax realize that collecting sales tax is a burden on merchants, and allow you to keep a small percentage of the sales tax you’ve collected. Don’t forget to take your discount. That’s free money! If you use TaxJar to AutoFile your sales tax returns for you, we make sure you always keep your sales tax discount in your pocket.
Following these 5 steps will ensure that you have a simple and successful sales tax filing in April. For more about sales tax, check out our free Sales Tax 101 for FBA Sellers Guide!
TaxJar is a service built to make sales tax compliance simple for eCommerce sellers. Try a 30-day-free trial of TaxJar today, and eliminate sales tax compliance headaches from your life!