california sales tax for online sellers, demystified

California Sales Tax, Demystified

Presented by Mark Faggiano

Copyright © 2017 TaxJar. TaxJar is a trademark of TPS Unlimited, Inc.

Today’s Agenda

● Who has to collect California sales tax

● How to collect sales tax in California

● Step-by-step guide to filing a California sales tax return

● Questions! (use the chat panel on the left)

QUICK INTRO:• Passion: using tech to solve

problems for small business!

• Founded TaxJar in 2013

• Not a CPA or tax professional• Talked to thousands of online

sellers, pros, auditors, states

• Here to help you make informed decisions

CALIFORNIA...


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“I want California sales tax to go

away!”– Average TaxJar Customer

WHO COLLECTS CALIFORNIA SALES TAX?


CHARGE SALES TAX IF YOU HAVE “NEXUS”

A presence / connection in California that’s significant enough for you to be required to comply with their sales tax

law


WHAT’S TAXABLE?

• Most tangible items are taxable in CA• Common exceptions are clothing and food

• Services are mostly not taxable in CA• Are the tides changing?

• Shipping, gift wrapping can be taxable


REGISTERING IN CALIFORNIA• Registering online is easy with one caveat...They

will try to persuade you to register with the CA Secretary of State

• Out-of-state sole-props & LLCs generally not required to register with the Secretary of State

• If you run into problems, call 916-227-6600 for an override

Mark Faggiano

[email protected] what's the caveat?

Jennifer Dunn

Oh, that they will try to get you to register with the Secretary of State. Added

HOW TO COLLECT CALIFORNIA SALES TAX


How to Charge Sales Tax if You Live in CA

● Charge “modified-origin” or “destination”

● We recommend destination


Full-Width Image SlideOver 200 sales tax districts in CA!


How to Charge Sales Tax if you DON’T Live in CA

● Charge “destination-based” sales tax

● Charge at the sales rate of your buyer’s “ship to” address

HOW TO FILE A CALIFORNIA SALES TAX

RETURN


YOU NEED THESE 4 THINGS TO FILE1.Gross Sales

2.How much you collected for shipping

3.Taxable sales by district

4.Taxable sales by county


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Helpful resources

youtube.com/taxjarFor visual learners

salestaxcommunity.comTalk with 5,000 other store owners and tax pros!

blog.taxjar.comContent just for ecommerce & sales tax


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855-800-6681


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california sales tax for online sellers, demystified

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