But when it comes to filing schedules, things get complicated: Each state creates its own rules, so everyone has a different schedule for when sales tax returns must be filed. For many states, the requirement to file monthly, quarterly, or annually depends on your average monthly tax liability.
The bottom line is, if you're handling your own sales tax and are starting to have bc data singapore nexus across multiple states, set up a system of due dates and reminders for each one.
Outsourcing Your Sales Tax Returns
Of course, these days, you can always pay someone else to do it. With sales tax, you have two basic options: an automated service or a live person.
What can be automated and what cannot.
Automated Platforms
When it comes to automated platforms, the two most trusted and well-known are TaxJar and Avalara.
tax jar
Taxjar Pricing and Plans
TaxJar is an automated service that will send your sales tax returns to the states you are registered in. This also eliminates tracking your license plate expiration date. TaxJar also offers easy integrations with all major payment platforms and gateways: Amazon, Shopify, eBay , BigCommerce, Etsy, Adobe Commerce, WooCommerce, Square, and Paypal.
Taxjar now offers an Economic Nexus Dashboard , which will tell you where you currently have nexus and where you're moving toward. However, TaxJar won't file your paperwork to obtain sales tax permits. TaxJar is fairly affordable, with tiered pricing that offers a limited number of returns per year.
Avatax is a guarantee
Avalara's Avatax is a more robust system and part of a system with several other products in addition to Avatax. It is also more expensive.
Avatax will track your sales to show you where you need to register, automatically applying product exemptions that apply in each state. They will also file your returns and remit sales tax for you, and offer assistance with registering in a new state.
Avalara also offers products with support for international sellers, who collect customs and import taxes (e.g. VAT).
