Tax Compliance and Automation for Online Store Owners | Liz Armbruester | Avalara
Honest Ecommerce · with Liz Armbruester · March 1, 2021 · 33 min
Summary
This episode demystifies sales tax compliance for e-commerce businesses, emphasizing the complexities of multi-state taxation and the critical role of automation. It highlights how platforms like Avalara free up online store owners from arduous tax calculations, allowing them to focus on growth and revenue-generating activities rather than compliance burdens. A must-listen for any e-commerce brand looking to scale without falling afoul of tax regulations.
Key takeaways
Understand your economic nexus: As your e-commerce business grows and sells into more states, you cross economic thresholds that trigger sales tax obligations, even without a physical presence. Be proactive in identifying these thresholds in each state you sell into.
Differentiate marketplace facilitator laws: Do not assume marketplaces like Amazon handle all your tax obligations. Laws vary by state and marketplace; some collect and remit, while others only calculate, leaving remittance to the seller. Verify your responsibilities for each platform.
Automate tax compliance early: Manual tax calculation across 12,000+ US jurisdictions is unsustainable and error-prone. Implement automation tools like Avalara to accurately calculate, collect, and remit sales taxes, saving time and mitigating audit risk.
Recognize the risk of non-compliance: Ignoring sales tax obligations can lead to significant penalties, interest, and legal issues. Proactive compliance is crucial for scalable and sustainable business growth.
Leverage available resources: Take advantage of resources provided by tax automation companies and industry experts to stay informed about changing tax laws and ensure continuous compliance.
Liz Armbruester is senior vice president of global compliance operations at Avalara. On this podcast, we talk about the complexities of taxes, what are the considerations to keep in mind aside from sales taxes, when should store owners think about tax automation, and so much more! To learn more, visit: http://honestecommerce.co Resources: Liz’s LinkedIn: linkedin.com/in/liz-armbruester-a7034a5 Avalara AvaTax for Shopify Plus: avalara.com/us/en/products/integrations/shopify-plus.html Visit gorgias.grsm.io/honest to get your 2nd month with Gorgias free! Visit klaviyo.com/honest to get a free trial! Visit avalara.com/honest to find out how your business can be sales tax ready! Visit rewind.com/honest and enter your email to get your first month absolutely free!
What does this episode say about finance & fundraising?
Understand your economic nexus: As your e-commerce business grows and sells into more states, you cross economic thresholds that trigger sales tax obligations, even without a physical presence. Be proactive in identifying these thresholds in each state you sell into.
What does this episode say about ai & automation?
Differentiate marketplace facilitator laws: Do not assume marketplaces like Amazon handle all your tax obligations. Laws vary by state and marketplace; some collect and remit, while others only calculate, leaving remittance to the seller. Verify your responsibilities for each platform.
What does this episode say about shopify & ecommerce platforms?
Automate tax compliance early: Manual tax calculation across 12,000+ US jurisdictions is unsustainable and error-prone. Implement automation tools like Avalara to accurately calculate, collect, and remit sales taxes, saving time and mitigating audit risk.
What does this episode say about finance & fundraising?
Recognize the risk of non-compliance: Ignoring sales tax obligations can lead to significant penalties, interest, and legal issues. Proactive compliance is crucial for scalable and sustainable business growth.
What does this episode say about finance & fundraising?
Leverage available resources: Take advantage of resources provided by tax automation companies and industry experts to stay informed about changing tax laws and ensure continuous compliance.
