Sales Tax Registration Renewals
When you operate an ecommerce business, you must file for a sales tax registration permit in each state in which you have nexus. Nexus determination is made by counting how many sales you have made in each state and totaling the dollar amount. Different states have different economic nexus thresholds, and that is why so many business owners turn to us for nexus help.
Once nexus determination is made and your ecommerce sales tax registration is complete, you will receive a sales tax permit from that state. It is a good idea to make electronic copies of your sales tax registration permits and keep the originals in a safe place.
In some states, sales tax permits are good for the life of your business, but in other states, they expire. Expiration dates vary; some are as short as a year while others are as long as five years. Many states do not charge for sales tax registrations, but some charge as much as $100. You might think that the states that charge a fee for sales tax registrations are the same ones that require you to renew, but in fact, there is no correlation. Additionally, some states that charge for a permit do not charge for a renewal.
In many states that require renewal of your ecommerce sales tax permit, that renewal is automatic, and nothing need be done on your part. In other states, you must take action to renew your permit or it will lapse and you will need to start over from the beginning by obtaining a new sales tax permit.
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Ecommerce Sales Tax Requirements
Your sales tax registration allows you to make sales in that state and collect the appropriate amount of sales tax online from the customer, which you then must remit to the state in the form of an ecommerce use tax payment, if it is not your home state. If you are behind on your tax payments, that state may decline to renew your license.
Each state may have different requirements for paying ecommerce use taxes and sales taxes online. For instance, in Maryland, you must pay your sales tax on the 20th of each month following the month in which the tax period ends, unless that day is on a weekend or holiday, and then it is due the next business day. Those with ecommerce sales tax permits in Maryland are initially required to pay quarterly taxes, but based on their sales numbers, this requirement may change to monthly, twice yearly or once a year.
Managing to comply with the sales and use tax laws in even one state is daunting; dealing with them in all 50 states can be overwhelming for ecommerce business owners. Offload this job to the experts at SalesTaxSolutions.US. We will help you collect and pay Shopify sales tax as well as taxes on other platforms such as eBay.