Taxation

Taxation 2020 | Who, What, When, Where, and How?

A business of any kind has certain tax obligations to consider. Selling online brings a completely new dimension to the game. When your selling online you have to consider not just the taxes that apply for doing business in your home state. Because your buyer may be located in another state or country.

Regardless of where your buyer is located, the jurisdiction needs to collect any applicable sales tax because your sale is still being made to a citizen in their jurisdiction, and they have both the right and the need to collect sales tax.

While nobody likes taxes, the fact is that taxes serve many purposes, and essentially are one of the ways that states and countries fund service that they provide to their citizens. Only in states like Oregon where they do not collect sales tax is it reasonable to assume otherwise. States and countries like Oregon have alternative methods of supporting state services.

So Who Pays, Collects, Reports, and Transfers All These Taxes?

This is an in-depth topic that is broken into the following topics;

Excise Taxes

Posts not found

Income Taxes

Posts not found

Sales Taxes

eCommerce and Sales Tax

How Does Sales Tax Work with Online Sales? x  

 

 


The Research

Please note the following supporting articles, case studies, etc.;

Articles

  1. Online Sales Tax in 2020: Fear, Anxiety, and Noncompliance
    Marketplace facilitator laws, “We call it the ‘Wayfair second wave,’” Maniace said. “Now [almost] every state that has an economic nexus law also has a marketplace facilitator law.”
  2. Oregon does not have a general sales tax
    The Wayfair decision does not affect Oregonians purchasing goods or services online
  3. The 7 Rules of Sales Tax for Today’s Online Sellers
  4. What to Know About E-Commerce Sales Tax
  5. Sales Tax for E-commerce: What Small Businesses Need to Know
  6. Higher Sales Tax May Have Surprised Holiday Shoppers in Some States

Case Studies

  1. x

Software

  1. (5) Essential WooCommerce Accounting Tips
    Once you have your sales tax rules figured, you can configure WooCommerce to charge sales tax automatically.  TaxJar and Avalara AvaTax can automatically manage all of your tax calculations, reporting, and filing sales taxes.

Video

  1. x

Notes

  • Form 1099-K; Beginning in 2019, any sales tax collected by marketplaces like; Amazon, eBay, Etsy, etc.,  for sales made by a “shop merchant” (in states with a sales tax), will not be on the “merchant’s” Form 1099-K because the marketplace “automatically collects” and “remits sales tax directly” to the state (i.e. sales tax collected is NOT paid to merchant sellers).

 

** see also sources in each section above.