E-Commerce & Sales Tax: What Sellers Need to Know

Explore the evolving landscape of e-commerce and sales tax compliance with our comprehensive PowerPoint presentation. Learn how marketplace facilitators like Amazon are reshaping sales tax collection in over 47 states, including upcoming changes in Missouri. Dive into key insights from the latest MTC whitepaper, understand the triggers for seller audits, and navigate the complexities of economic nexus thresholds. Our detailed yet concise slides will help you stay compliant and informed. Perfect for e-commerce sellers, tax professionals, and state legislators.

1. E-COMMERCE &
SALES TAX
What Sellers Need to Know
trykintsugi.com

2. MARKETPLACE
FACILITATORS & SALES TAX
Major platforms like Amazon, eBay, and
Walmart now collect and remit sales tax on
behalf of sellers.
They do this in more than 47 states, including
the District of Columbia and at local levels in
Alaska.
Missouri will start implementing these rules in
January 2023.

3. INSIGHTS FROM MTC
WHITEPAPER
A recent MTC whitepaper offers important
recommendations for state legislators and tax
agencies.
These recommendations help in considering
new laws or amendments for sales tax during
legislative sessions.
Focus on aligning state laws with the evolving
e-commerce landscape.

4. WHEN SELLERS FACE
AUDITS
Sellers may face audits if they exceed sales volume
thresholds set by states.
Audits can be triggered by inconsistent sales tax
reporting or failure to register for sales tax collection.
Issues with exemption certificates or cross-border
sales can also prompt audits.

5. ECONOMIC NEXUS
THRESHOLDS
Economic nexus thresholds determine when sellers
must collect sales tax.
Most states consider both marketplace and direct
sales for these thresholds.
A few states count only direct sales, benefiting
sellers who mainly use platforms like Amazon.

6. DEFINING MARKETPLACE
FACILITATORS
Established marketplace facilitators include
Amazon, eBay, and Walmart.
New challenges arise with payment processors,
advertisers, and other service providers.
These entities need to determine their sales tax
collection responsibilities.

7. RETAILER
RESPONSIBILITIES
Marketplace facilitators are now considered
the retailer for sales tax purposes.
This shift helps clarify tax collection but may
change previous nexus claims.
States are unlikely to revisit old nexus
definitions, but tax laws can change.

8. COLLECTION DUTIES
Marketplace facilitators are primarily responsible for
collecting sales tax.
Complexities arise with additional state fees and
taxes, needing further examination.
Sellers must stay informed about their specific
collection responsibilities.

9. CERTIFICATION
REQUIREMENTS
Facilitators must provide documentation to sellers
during audits.
This requirement allows sellers to shift scrutiny onto
facilitators if needed.
Ensures transparency and proper documentation
during tax audits.

10. INFORMATION SHARING
tates share information about sales and tax
collection.
This shared data can be used against sellers if
discrepancies are found.
Sellers need to maintain accurate records to
avoid issues.

11. STAYING COMPLIANT
Sellers must still comply with sales tax laws,
even if facilitators handle tax collection.
Physical or economic nexus in various states
can lead to tax liabilities.
Regularly review and understand your tax
obligations.

12. INDEPENDENT PLATFORMS
Selling through independent platforms like personal
websites or Shopify is more complex.
Compliance requires tracking sales volumes and
keeping detailed records.
As sales increase, so does the need for accurate tax
reporting.

13. NEED HELP?
A sales tax nexus analysis can help identify your tax
obligations.
This resource helps you understand where and
when you need to register for sales tax.
Consider consulting with tax experts to stay
compliant.

14. THANK YOU
OUR CONTACT
[phone]
trykintsugi.com
[email protected]
2261 Market Street STE 5931
San Francisco, CA 94114